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Speaker 1: Welcome to the Bloomberg Penl Podcast. I'm Paul swing you,

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Speaker 1: along with my co host Lisa Brahma wits. Each day

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Speaker 1: we bring you the most noteworthy and useful interviews for

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Speaker 1: you and your money. Whether at the grocery store or

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Speaker 1: the trading floor. Find a Bloomberg Penl podcast on Apple

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Speaker 1: podcast or wherever you listen to podcasts, as well as

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Speaker 1: that Bloomberg dot Com. Stefan bon Cell CEO Moldern are

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Speaker 1: talking to Vonnie Quinn and Guy Johnson and Bloomberg Television,

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Speaker 1: Uh Lisa talking about the potential vaccine that they're working

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Speaker 1: aggressively towards UM and that news really pushing the stock

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Speaker 1: up buzz Vonnie mentioned over this morning. But I guess

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Speaker 1: the key takeaway from me is the kind of the

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Speaker 1: sense of timing here getting into a phase two UM,

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Speaker 1: you know, I guess by July and then hopefully, if

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Speaker 1: all goes well, having it available by your end. It's

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Speaker 1: interesting you're as Vanni mentioned that the stock has risen

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Speaker 1: twenty two percent, Goldvin Sachs raising their target for the shares,

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Speaker 1: with one analysts saying that this initial study seems to

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Speaker 1: have hit the mark. The question that I have and

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Speaker 1: maybe Max Neeson of LIBC Opinion can answer it is

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Speaker 1: does a first mover advantage when with respect to the

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Speaker 1: vaccine equate to profits given the political pressure to keep

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Speaker 1: costs down. This is an issue John Farroll raised earlier

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Speaker 1: this morning. I think it's an important one, Max Neeson

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Speaker 1: joining us now and Max before we get into the

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Speaker 1: details of the study. Will the creators of the first

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Speaker 1: vaccines make a lot of money? I think it's. Um.

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Speaker 1: It's a complicated question because Maderna especially is getting a

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Speaker 1: big chunk of money from the U. S. Government, and

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Speaker 1: with that comes expectations. Um, you know that the pricing

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Speaker 1: will be moderate, that availability will be broad, and I

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Speaker 1: think that that genuinely is going to crimp on any

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Speaker 1: profit that's available. On the other hand, if you actually

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Speaker 1: successfully develop a COVID nineteen vaccine, you will end up

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Speaker 1: making some degree of money. You'll at least recoup your investment,

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Speaker 1: probably more. And on top of that, you know, if

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Speaker 1: it's Maderna, you can't imagine a better validation of of

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Speaker 1: the company's technology if it was able to turn around

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Speaker 1: a vaccine this rapidly. But I don't think they'll They'll

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Speaker 1: be able to price it at sort of the profit

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Speaker 1: maximizing level, it will be somewhere closer to cost and

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Speaker 1: and a little bit on top of that, I would

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Speaker 1: I would imagine so Max one of the models, I

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Speaker 1: guess what I what I'm thinking about. And one of

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Speaker 1: the questions I have is just distribution. Whenever a vaccine

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Speaker 1: is approved, are we going to need billions of doses

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Speaker 1: for everyone on the planet or what's the thinking there?

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Speaker 1: Because if it is something along those lines, it sounds

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Speaker 1: like not. You know, you're gonna have to need multiple

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Speaker 1: companies to get into the manufacturing and distribution game. Howes

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Speaker 1: that figure out? Yeah? You you absolutely are going to

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Speaker 1: need multiple companies and all likelihood multiple vaccines. Um, just

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Speaker 1: because of the bottlenecks of of of manufacturing at such

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Speaker 1: a broad level. You don't have to man vaccinate everybody

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Speaker 1: on the planet. You need to get at a level

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Speaker 1: that that makes community transmission unhighly unlikely. That's somewhere in

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Speaker 1: the sixty seventy percent range. We're not exactly sure. Um,

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Speaker 1: you know, because this is a novel virus, but that

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Speaker 1: still equates to billions of doses. So yes, you will

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Speaker 1: need multiple different manufacturers of multiple different companies multiple different vaccines.

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Speaker 1: Some require cold chain to be refrigerated the whole time.

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Speaker 1: That's tough in Sub Saharan Africa. So you may also

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Speaker 1: need a more stable and more shelf stable vaccine. It's

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Speaker 1: a lot of different things that factor into this. So

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Speaker 1: the more the merrier in terms of manufacturing and a

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Speaker 1: number of vaccines. Max can you put into perspective the

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Speaker 1: success of this EARL early phase trial, in other words,

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Speaker 1: how much faith we can really place in this indicating

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Speaker 1: with the virus that the vaccine will be effective in

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Speaker 1: preventing sickness. So I think the really key word here

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Speaker 1: is early, and I'm going to repeat it again early

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Speaker 1: because it really small, really small study that was designed

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Speaker 1: mostly to focus on safety. And now the fact that

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Speaker 1: there's immunogenicity and and that there's this appears to be

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Speaker 1: an antibody response, and that there's other patients produced antibodies.

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Speaker 1: That's definitely positive. But that antibody is from eight patients,

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Speaker 1: and the relative to the bar that it's being measured

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Speaker 1: against is equivalent or greater than the antibodies you see

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Speaker 1: and recovered patients. We don't know if that's actually protective

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Speaker 1: and for how long that's protective. So I just want

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Speaker 1: to emphasize that it's a really long way before we

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Speaker 1: can have any certainty that this vaccine or any vaccine

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Speaker 1: produces a durable immune response on a population level UM.

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Speaker 1: And then beyond that you always have to look at

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Speaker 1: at safety issues which which can emerge when you when

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Speaker 1: you test in a much broader population and at the

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Speaker 1: highest dose of the second of dudos of his vaccine, UM,

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Speaker 1: three people did did have food like symptoms, So there

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Speaker 1: is the potential for that negative immune response and we'll

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Speaker 1: have to watch that closely. So there really is no

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Speaker 1: substitute for running really big phase three trials, and there

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Speaker 1: is still a significant failure risk despite the fact that

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Speaker 1: you have UM these nice early little pieces of data. Max,

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Speaker 1: just refresh our memory here aside from mode mode, Danna,

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Speaker 1: what are the other potential vaccines that seem to be

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Speaker 1: farthest along at there? Who should we be listening to? UM?

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Speaker 1: You know they're I mean, there are dozens, but there

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Speaker 1: in terms of what's in human trials. Another mr Anda

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Speaker 1: vaccine from fiser Um Johnson and Johnson moving rapidly on

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Speaker 1: on a viral vector vaccine UM that then multiple candidates

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Speaker 1: in China, a couple of which are are sort of

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Speaker 1: what I would describe as relative to Madernau kind of

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Speaker 1: older approaches. Um. So on one hand, they might have

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Speaker 1: a harder time creating a really robust and meaning response.

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Speaker 1: On the other hand, we understand and them better um

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Speaker 1: than than this messenger. Our vaccine, which again it's worth emphasizing,

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Speaker 1: has has never been used in a in a large

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Speaker 1: approved vaccine in humans. So, UM, you really do have

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Speaker 1: to as much as it's nice to focus on this

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Speaker 1: one kind of early um, you know, first mover or

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Speaker 1: at least first report of interim data. Um, you do

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Speaker 1: want to develop a number of different candidates because the

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Speaker 1: relative benefits and risk will only emerge when you run

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Speaker 1: those much larger trials. Max Neeson of Bloomberg Opinion on

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Speaker 1: the late stage phase. Oh wait a second, early early

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Speaker 1: I think I got that. Max Neeson of Bloomberg Opinion,

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Speaker 1: joining us on that that moderna vaccine study that was

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Speaker 1: very much in the early phases but still promising. Nonetheless, well,

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Speaker 1: with more and more people working from home, one of

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Speaker 1: the questions is what does that mean for commercial real estate. Well,

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Speaker 1: companies need less space because they're finding that they're your

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Speaker 1: employees can efficiently work from home or perhaps even more

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Speaker 1: space because when they do eventually come back into the

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Speaker 1: work space, they may need more space to spread out.

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Speaker 1: So it's really kind of a question about what this

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Speaker 1: means for office space going forward. Lisa n Co leader

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Speaker 1: for the national real Estate practice at Eisner Amper joins us. Lisa,

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Speaker 1: give us a sense of kind of how you guys think, Um,

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Speaker 1: this pandemic and this work from home trend is going

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Speaker 1: to impact commercial real estate going forward. Hi, thank you

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Speaker 1: for having me in this morning, so that our pleasure

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Speaker 1: perfectly put. So, when you examine and compare the loss

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Speaker 1: of jobs from the office using sectors to some of

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Speaker 1: the other sectors the office sector, professional service firms, finance, government,

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Speaker 1: hi Tech, they're seeing a fewer job losses than any

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Speaker 1: other sector. But how is that really going to correlate,

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Speaker 1: as you mentioned before, to the need for commercial office space.

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Speaker 1: There's still always going to be a need for this

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Speaker 1: office space. But here's the big question that you mentioned.

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Speaker 1: The tension really is forming between the need for space

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Speaker 1: for social distancing, which is going to demand more space

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Speaker 1: per worker, versus the economic pressure of working from home.

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Speaker 1: So it's an example, when I started in the industry

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Speaker 1: twenty years ago, the workforce model was three or three

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Speaker 1: and a half people per thousand square feet versus right

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Speaker 1: before the pandemic it was six people per thousand square feet.

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Speaker 1: So that really is going to be the dynamic of

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Speaker 1: whether you're going to encourage your office workers to work

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Speaker 1: from home or you're gonna reconfigure spaces to give people

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Speaker 1: that ability for social distancing. And so that's really the

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Speaker 1: question and communicating It's also going to depend on the

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Speaker 1: type of office um job that the people are using

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Speaker 1: within those buildings. So there's also going to be a

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Speaker 1: pushback a little bit on the dentification. So we're going

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Speaker 1: to see coworking space really change the way that it's

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Speaker 1: been doing in the in the past. The reworks, they're

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Speaker 1: all going to be rethinking their models where it's probably

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Speaker 1: is going to become more of a managed service. And

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Speaker 1: so now maybe the landlords are going to get in

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Speaker 1: direct contact with those people that were using the coworking

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Speaker 1: space and be able to create spaces for them directly

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Speaker 1: with more managed amenities. So, as I mentioned before, a

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Speaker 1: lot of that's going to depend on the tenant and

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Speaker 1: the location and what we've really seen, which is even

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Speaker 1: more interesting, is that the office space outside of urban

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Speaker 1: cities are in really high demand. It's really really hard

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Speaker 1: to find. So these commercial real estate tenants are rethinking

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Speaker 1: going into an elevator on the thirtieth floor, right. And

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Speaker 1: so now those suburban markets with maybe three stories have

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Speaker 1: seen a lot, a lot of activity, and so that

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Speaker 1: new norm for office is really that tricky question of

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Speaker 1: how that how it's going to be balanced going forward. Lisa,

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Speaker 1: there's a lot there. Let's unpack a little bit of

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Speaker 1: it there. I want to I want to get into

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Speaker 1: the shift away from densely populated urban areas because this

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Speaker 1: is something a lot of people are wondering about, especially

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Speaker 1: given the high valuations of commercial real estate in the

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Speaker 1: big urban centers. Is that all dead in the water now?

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Speaker 1: So people are still going to be in the urban

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Speaker 1: cities and want to work those those high tech jobs,

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Speaker 1: the professional services firms, you know, they're still going to

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Speaker 1: be in the in the larger cities, those gateway cities

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Speaker 1: are still going to call a demand for that. And

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Speaker 1: so I think it's just a rethinking and repositioning of

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Speaker 1: how you're using the space, rather than people just flooding

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Speaker 1: and evacuating, so to speak, those dentification markets. It's just

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Speaker 1: figuring out how to get that tension to be where

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Speaker 1: people are gonna feel comfortable going back into that space. It'sentering, Lisa.

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Speaker 1: I wonder how the workspace itself is going to evolve

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Speaker 1: when I start on Wall Street. You know, thirty years ago,

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Speaker 1: everybody had the cubes, or if you're an officer, you

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Speaker 1: had an office, and if you were a senior, you know,

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Speaker 1: a managing director, you had a really big office. Um.

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Speaker 1: But now you know it's much more of an open

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Speaker 1: floor plan. That's certainly how Bloomberg has been configured globally.

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Speaker 1: How do you think the floor plans are going to evolved?

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Speaker 1: Is the open floor plan where everybody's just kind of

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Speaker 1: sitting with little to know barriers? Is that a thing

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Speaker 1: of the past here until maybe we get a vaccine

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Speaker 1: or something different. I think it has to be right.

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Speaker 1: I think that people are gonna have to feel comfortable

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Speaker 1: and safe in their work environment. So whether they're going

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Speaker 1: in on shifts, if there is some hoteling, um where

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Speaker 1: it's an A or a B day um, but people

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Speaker 1: are going to have to feel that they're secure and

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Speaker 1: it's clean. And so that model of either putting up

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Speaker 1: barriers UM or some sort of protection. Uh. We even

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Speaker 1: had some conversations with people about antiseptic finishes, non touch

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Speaker 1: access to things within the office. Things are people are

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Speaker 1: really going to have to feel that their space is

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Speaker 1: their own space and they're going to feel comfortable, um

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Speaker 1: and safe going back into the workforce. Um. And and

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Speaker 1: even in the urban cities. You know, I'm sure you've

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Speaker 1: been speaking a little bit about you know, people on

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Speaker 1: the subways and getting back into the city. But once

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Speaker 1: they're they're getting in that elevator, they need to feel

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Speaker 1: that they are safe and secure. Lisa y Colider for

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Speaker 1: the national real estate practice at Eisner Emperor in New York,

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Speaker 1: thank you so much for being with us. And I

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Speaker 1: will just say talking about getting around the city, Paul,

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Speaker 1: everyone's biking and and really biking and and actually this

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Speaker 1: weekend I purchased a new bike for four guns and

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Speaker 1: they were almost out of bikes and the line was

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Speaker 1: around the block. I mean, really, this is sort of

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Speaker 1: the mode of transportation now, um for for people who

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Speaker 1: don't want to go back. It really is. I was

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Speaker 1: just reading an interesting an article on that on the

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Speaker 1: Bloomberg terminal today. I think sales are up in April

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Speaker 1: and the tracking even higher, uh in the month of May,

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Speaker 1: and they're you know, getting to the point where you

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Speaker 1: mentioned list there's a shortage in a lot of areas here,

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Speaker 1: so um, yeah, it's gonna be interesting to see how

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Speaker 1: this all evolves. As you know, we're seeing in New

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Speaker 1: York City shutting down streets to allow more efficient foot traffic,

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Speaker 1: and you just wondering how much of this is gonna

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Speaker 1: be permanent or just kind of transitory. Yeah, and we'll

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Speaker 1: hear more about the reopening plans coming up. Andrew Cuomo,

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Speaker 1: Governor of New York State, talking about the latest there

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Speaker 1: with the daily coronavirus is briefings that have become a

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Speaker 1: key part of this entire era. J C. Penny filing

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Speaker 1: for bankruptcy on Friday just kind of this is something

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Speaker 1: that has been expected for a long time. This is

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Speaker 1: a department store chain that's really been on the bankruptcy

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Speaker 1: for some time, as department stores in general really feeling

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Speaker 1: the brunt of the move towards e commerce. Do you

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Speaker 1: get a sense of what it means for not only

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Speaker 1: J C. Penny but the department store genre in general.

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Speaker 1: We turned to brought Bert Flicking German. He's a managing

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Speaker 1: director for Strategic Resource Group. Bert, thanks so much for

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Speaker 1: joining us once again here so kind of put into

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Speaker 1: context force Bert, kind of what this j C. Penny

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Speaker 1: bankruptcy filing means for them? Is this a company that

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Speaker 1: can continue? Is this a brand that can continue? Oh? Yes,

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Speaker 1: j C. Penny's viable will continue. It got wrecked by

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Speaker 1: the Wall Street pirates, Bill Ackman, Pershing Square, etcetera. Uh,

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Speaker 1: Walsh didn't understand Main Street and the difference now Paul

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Speaker 1: and Lisa's leadership. Penny's got great leadership with Jill saltal

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Speaker 1: great great store teams, and as you mentioned a minute ago,

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Speaker 1: Penny is getting rid of the stores and the d

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Speaker 1: n C malls that were impaired by being co located

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Speaker 1: by liquidated Bonton and Herberger's stores and soon to be

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Speaker 1: liquidated Sears stores. Now they'll stay in mostly A malls,

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Speaker 1: H and B plus malls. So bet on J C.

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Speaker 1: Penny to win and bet on Neiman Marcus to lose.

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Speaker 1: Just I want to go back to what you said initially,

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Speaker 1: Wall Street versus Main Street, and you view this as

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Speaker 1: a well Street not understanding the story here and and

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Speaker 1: kind of creating a bad scene for J. C. Penny.

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Speaker 1: But what would you say to people who argue that

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Speaker 1: the store doesn't have an identity that works with the

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Speaker 1: modern era. They used to be the mail order company.

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Speaker 1: Now what are to day? Lisa? You're bringing up key

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Speaker 1: considerations and what Penny is is the UH leading department

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Speaker 1: store for United Nations of consumer constituencies. Number one with

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Speaker 1: Spanish speaking consumers, number one with people of color, number

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Speaker 1: one with Caucasian consumers. UH. And it doesn't cater to

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Speaker 1: mestize prestige or luxury. It caters to working people who

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Speaker 1: want good quality. Penny's got great cotton, great color palettes. UH.

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Speaker 1: Sephora for beauty UH, the number one partnership anywhere anywhere worldwide.

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Speaker 1: Sephora's flagship store in Paris actually draws more tourists than

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Speaker 1: the Eiffel Tower does every day. And they bring back

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Speaker 1: the salons and UH in kitchenware and home goods, just

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Speaker 1: like Craig Coleman and Ashley Glazier. They're great team at

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Speaker 1: Macy's and similar teams at Dillard's. Macy's is taking advantage

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Speaker 1: of the rent sots and food retail. Uh, as is

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Speaker 1: j C. Penny and selling a lot more kitchen and

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Speaker 1: home item So was a question of bad locations uh

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Speaker 1: and Ackman and company wrecking retail, UH, leaving Penny on

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Speaker 1: death store step and now with a good team and

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Speaker 1: a customer base that loves Penny as an iconic retailer, UH,

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Speaker 1: Penny will be viable. Your your point, Lisa, J C.

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Speaker 1: Penny dot com long Way to Go needs a lot

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Speaker 1: of improvement. Uh. They needed to get out of appliance

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Speaker 1: as they are, But they're Jill's taking corrective action. We're

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Speaker 1: needed and Penny is gonna go through real retail retail requiem,

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Speaker 1: while while the rest of much of the rest of

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Speaker 1: the department and specialty store retail is going through an

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Speaker 1: accelerating retail ice age. So Bert, I know they're shutting

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Speaker 1: a bunch of stores here. Maybe the stores. Is that

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Speaker 1: enough or do they need to shrink the footprint even more?

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Speaker 1: Do you think, Paul? Paul, your important point is key

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Speaker 1: the thirty percents en off. It's thirty that they should

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Speaker 1: have done a few years ago. But but UH, to

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Speaker 1: the company's credit, they had to wait uh to see

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Speaker 1: what was going to be impaired and left vacant by

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Speaker 1: the Bontan, the boss covs UH and the the other

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Speaker 1: bankrupt bankruptcy is most most notably Sears. So now UH,

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Speaker 1: the surviving Penny stores on on your key point, Paul

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Speaker 1: will be co located with Macy's and other leading anchor

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Speaker 1: department store chains. And then we're seeing Chris Paul Wound,

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Speaker 1: Lead Delaney UH, David pico U taking Great anchor department

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Speaker 1: stores UH and converting him with BJ Soulesale Club. Craig

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Speaker 1: jellinek Uh and Rich Galante at Costco are taking Great

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Speaker 1: department Stores converting him to Costco. That's gonna be a

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Speaker 1: real revitalization of customer counts that will help Penny and

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Speaker 1: macey He's and other mall based retailers across the country.

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Speaker 1: We're speaking with Bert Flicking ger managing director at Strategic

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Speaker 1: Resource Group, and I want to zoom out from j C.

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Speaker 1: Pennymore broadly into the retail sector where we've seen bankruptcy

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Speaker 1: is really accelerating. Yes, this is because of the pandemic. However,

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Speaker 1: we also are seeing a consolidation of power both by

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Speaker 1: Amazon and Walmart, which will report earnings tomorrow. I'm just wondering,

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Speaker 1: is this going to be the era where the big

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Speaker 1: get bigger in retail and all of the weaker players

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Speaker 1: ultimately have to completely rethink themselves or go out of business.

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Speaker 1: Lisa Big, Big, get better. UH, we get boxed up

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Speaker 1: for the bankruptcy Bone Yard. The difference is the keystone

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Speaker 1: in the bridge to success is food retail and for

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Speaker 1: International Council shopping centers, Tom Shay's great team with Stephanie

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Speaker 1: Sagalski and Malachi Kevanagh, we did a webinar people all

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Speaker 1: shopping center owners and retail executives U similar to the

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Speaker 1: work we did for Ben Camaratta Carol Myerwitz at t

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Speaker 1: j X. If you have a high volume locally owned

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Speaker 1: or chain UH that's based in food, UH, Penny Macy's,

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Speaker 1: the other retailers, hard goods, soft, soft goods, general merch tabletop.

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Speaker 1: As America goes from UH consuming food percent at home

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Speaker 1: to now eight cent at home, we think that will

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Speaker 1: settle at six sixty five. Anybody who sells food related

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Speaker 1: retail items and merchandise as well advertised as well, especially

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Speaker 1: with language specific consumer communication, will be winners. And that's

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Speaker 1: Macy's penny will come back the same way. And Lisa,

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Speaker 1: to your point on Walmart, Walmart will probably reported dollar

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Speaker 1: twenty share tomorrow versus one oh two. Bert Lickinger, We're

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Speaker 1: gonna have to leave it there. I'm sorry to cut

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Speaker 1: you off. Bert Flickinger, Director IT Strategic Resource Group, talking

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Speaker 1: about the landscape of retail. FED Chair J. Powell and

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Speaker 1: all of the federals or of governors have talked about

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Speaker 1: the likelihood of a growing rash of bankruptcies amongst smaller

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Speaker 1: business America, and there's a question of how quickly the

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Speaker 1: federal government is getting aid to these businesses. On the

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Speaker 1: front lines of that is Don McRae, vice chairman and

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Speaker 1: head of commercial Banking at Citizens Financial Group in Boston

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Speaker 1: and Providence Road to Island, a question about how successful

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Speaker 1: the Paycheck Protection Program the p p P has been

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Speaker 1: so far and what's necessary to shore up this sector

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Speaker 1: of the U. S. Economy. Don, thank you so much

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Speaker 1: for being with us. Can I just first ask you

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Speaker 1: to kind of grade the Paycheck Protection Program as Congress

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Speaker 1: members debate how to change it, tweak it to make

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Speaker 1: it more effective. How effective do you think it's been

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Speaker 1: so far? I actually think, Lisa, that has been a

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Speaker 1: pretty good program. You know, our experience has been quite

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Speaker 1: strong with our clients. We have about forty five thousand

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Speaker 1: some odd clients apply for the program for around five

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Speaker 1: billion dollars and UM we have now funded almost those

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Speaker 1: of those loans and they're they're really going to small

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Speaker 1: companies I think of them or companies with less than

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Speaker 1: twenty five employees. So it's really ending up in the

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Speaker 1: hands of small businesses that um that need the money.

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Speaker 1: I think one of the challenges is depending where you

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Speaker 1: are in the country, so we may be a little

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Speaker 1: bit different being in the Northeast. Is the makeup of

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Speaker 1: small businesses expense spaces varies widely, and some take a

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Speaker 1: restaurant for example. In some parts of the country, labor

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Speaker 1: is a very significant cost UH component, but in another

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Speaker 1: part of the country, say New York City, it really

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Speaker 1: is rent. So some of the usability of the of

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Speaker 1: the of the moneys for employees versus other parts of

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Speaker 1: the cost structure I know as a pressure point for

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Speaker 1: some of these small businesses. So don given that you're

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Speaker 1: seeing some success with your client based small and midsized businesses.

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Speaker 1: With his first round of fiscal stimulus. Is it's your

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Speaker 1: expectation that, again dealing with your clients, that they really

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Speaker 1: need a second round of stimulus as well. I think

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Speaker 1: it depends on the client. I think you've got the

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Speaker 1: main street programs which are beginning to roll out. Uh,

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Speaker 1: some clients will access those. They aren't fully formulated yet,

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Speaker 1: but there's an allowance of people who receive the paycheck

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Speaker 1: program to take take main street money. I think the

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Speaker 1: fet is is at work thinking about other ways to

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Speaker 1: distribute kind of different forms of aid into UM into

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Speaker 1: the corporate America, so they and then and then really

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Speaker 1: the wild card is going to be how quickly things

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Speaker 1: begin to open. I was just on the phone someone

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Speaker 1: in South Carolina, for example, and he said, Hey, the

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Speaker 1: restaurants here are really busy. So business is back. And

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Speaker 1: that's the first state that's reopened. So I think it's

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Speaker 1: a combination of company and location and reopening rate. John

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Speaker 1: There's been a question as the middle market sector comes

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Speaker 1: under pressure from COVID nineteen, there's a question about regional

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Speaker 1: banks in general and an expected wave of consolidation that's

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Speaker 1: expected to accelerate on the heels of this pandemic. Where

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Speaker 1: are you seeing in that space, and are you interested

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Speaker 1: in participating in an acquirer type mode. UM. You know,

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Speaker 1: I'd say, right now, our focus is unilaterally taking care

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Speaker 1: of our customers, and so I think for the next

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Speaker 1: six months it's going to be all about helping our

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Speaker 1: clients through UM, this disruption. UM. And it's literally client

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Speaker 1: by client UM. And then I think it's the consolidation

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Speaker 1: question will really be you know, what does the industry

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Speaker 1: look like when we're through this. We're quite optimistic based

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Speaker 1: on what we're seeing right now, um and uh. And

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Speaker 1: then are there a logical combinations? So it's not it's

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Speaker 1: not strategically something that we're focused about. The split second.

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Speaker 1: So done. How has this pandemic and the work at

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Speaker 1: home work from home phenomena impacted your business? I suspect,

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Speaker 1: you know, your bankers like to spend a lot of

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Speaker 1: time on the road meeting with their clients, you know,

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Speaker 1: but now they're forced to work from home. How has

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Speaker 1: it impacted your business? So? I think I think it's

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Speaker 1: actually been surprisingly good. UM. We don't think we've lost

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Speaker 1: a beat in terms of in terms of interaction with clients. UM.

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Speaker 1: We actually think our efficiency has gone up as people

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Speaker 1: aren't on airplanes and aren't commuting and aren't doing all

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Speaker 1: the things that take them away from actually doing work.

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Speaker 1: We've been able to process everything through our operations units

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Speaker 1: remotely without a hitch um And actually we were finding

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Speaker 1: the interaction with our clients largely because we're in the

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Speaker 1: middle of a crisis and they want to talk to us,

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Speaker 1: you know, pretty seamless. Um. So we feel we feel

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Speaker 1: good about it. It's actually surprised us. We thought going

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Speaker 1: into this that we were going to have, you know,

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Speaker 1: some challenges in terms of keeping productivity up and staying

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Speaker 1: in touch with people. But I'd say it's had zero

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Speaker 1: negative impact. And and and well, you know, we're regardless of

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Speaker 1: where we go, we'll be like this for a while,

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Speaker 1: not necessarily working remotely, but you know they're going to

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Speaker 1: the restaurants and going to the sporting events, and you know,

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Speaker 1: getting on airplanes and pitching will be at a very

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Speaker 1: different level than it was for some some period of time.

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Speaker 1: So don does that mean just real quick here twenty seconds,

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Speaker 1: are you going to shrink your footprint and office space.

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Speaker 1: I haven't decided that yet. We do. We we may

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Speaker 1: actually bring some things back on shore, which I think

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Speaker 1: will be good. Um, so I'm not sure we'll actually

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Speaker 1: need to shrink off space, but we'll be doing some

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Speaker 1: on shoing. Don McCree, thanks so much for joining us.

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Speaker 1: We always appreciate your thoughts and opinions. Don McCree, vice

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Speaker 1: chairman and head of Commercial Banking for Citizens Financial Group

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Speaker 1: based in Boston as well as Providence, Rhode Island. Interesting,

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Speaker 1: kind of interesting, Lisa, you know, having a little to

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Speaker 1: to know negative impact kind of working from home issue. Yeah,

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Speaker 1: We're hearing this from a lot of people, and I

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Speaker 1: wonder as time goes on, will the negative impact on

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Speaker 1: new ideas and things that can kind of get generated

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Speaker 1: when people pass themselves in the hallway, will that will

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Speaker 1: that be felt? Or is this really going to be

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Speaker 1: a referendum on office space. Yeah, it's really interesting. I mean,

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Speaker 1: I think a lot of folks feel like being in

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Speaker 1: the office has value, but there's certainly now I guess,

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Speaker 1: an appreciable cost to that, so that might be changing

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Speaker 1: the calculus a little bit. So I'm sure a lot

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Speaker 1: of companies will be thinking about this going forward. Thanks

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Speaker 1: for listening to the Bloomberg P and L podcast. You

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Speaker 1: can subscribe and listen to interviews at Apple podcasts or

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00:26:36,680 --> 00:26:39,960
Speaker 1: whatever podcast platform you prefer. Paul Sweeney, I'm on Twitter

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Speaker 1: at pt Sweeney. I'm Lisa Abram woids I'm on Twitter

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Speaker 1: at Lisa Abram Woyds One. Before the podcast, you can

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00:26:45,440 --> 00:26:47,840
Speaker 1: always catch us worldwide on Bloomberg Radio