1 00:00:00,160 --> 00:00:03,360 Speaker 1: This is Bloomberg Wall Street Week. What's the state of 2 00:00:03,400 --> 00:00:06,360 Speaker 1: corporate governance? The deficit is a real issue. The US 3 00:00:06,400 --> 00:00:09,920 Speaker 1: economy continues to send mixed signals, the financial stories that 4 00:00:10,000 --> 00:00:13,000 Speaker 1: cheap our world fed action to con concerns over dollar 5 00:00:13,039 --> 00:00:16,520 Speaker 1: liquidity and encouraging China data. The five hundred wealthiest people 6 00:00:16,520 --> 00:00:19,160 Speaker 1: in the world. Through the eyes of the most influential 7 00:00:19,239 --> 00:00:22,880 Speaker 1: voices Larry Summers, the former Treasury Secretary, Star CEO, Kevin 8 00:00:22,960 --> 00:00:26,640 Speaker 1: Johnson sec Chairman j Clayton. Bloomberg wool Street Week with 9 00:00:26,760 --> 00:00:30,520 Speaker 1: David Weston from Bloomberg Radio. It's worse than we thought, 10 00:00:30,760 --> 00:00:33,720 Speaker 1: and we have only one job to do. This is 11 00:00:33,760 --> 00:00:37,440 Speaker 1: Bloomberg Wall Street Week. I'm David Weston. Welcome back another 12 00:00:37,479 --> 00:00:41,520 Speaker 1: week and another week of the coronavirus. As the infections 13 00:00:41,600 --> 00:00:44,680 Speaker 1: mount and the death hole rises. Wherever we are in 14 00:00:44,720 --> 00:00:47,199 Speaker 1: the United States, are around the world, whoever we are, 15 00:00:47,320 --> 00:00:50,440 Speaker 1: and whatever political affiliations or police we might have, we 16 00:00:50,520 --> 00:00:53,360 Speaker 1: now only have one common enemy, and that is defeating 17 00:00:53,640 --> 00:00:57,320 Speaker 1: this Corona virus. And for the United States, President Trump 18 00:00:57,360 --> 00:01:00,880 Speaker 1: has designated his Vice President Mike Pence to his general 19 00:01:00,880 --> 00:01:03,600 Speaker 1: in charge. And so we start this week with Vice 20 00:01:03,600 --> 00:01:05,959 Speaker 1: President Mike Pence and what he would say to the 21 00:01:06,040 --> 00:01:09,720 Speaker 1: millions of Americans who are losing their jobs. Well, I 22 00:01:09,760 --> 00:01:11,760 Speaker 1: want to tell the American people that help is on 23 00:01:11,800 --> 00:01:16,959 Speaker 1: the way. Thanks to the President's leadership and strong bipartisan 24 00:01:17,040 --> 00:01:20,720 Speaker 1: support in the House and Senate, we pass a historic 25 00:01:21,760 --> 00:01:27,800 Speaker 1: relief bill that will soon be speeding aid to American families. 26 00:01:27,800 --> 00:01:30,040 Speaker 1: The average family of four receive a direct payment of 27 00:01:30,080 --> 00:01:33,800 Speaker 1: thirty four hundred dollars UH. There are going to be 28 00:01:34,120 --> 00:01:38,360 Speaker 1: UH loans which will operate his grants essentially for small 29 00:01:38,400 --> 00:01:45,000 Speaker 1: businesses to support payroll during the course of the coronavirus epidemic. 30 00:01:45,240 --> 00:01:50,480 Speaker 1: Businesses of the small businesses around America be able to 31 00:01:50,560 --> 00:01:53,000 Speaker 1: keep people on their payroll during that period of time. 32 00:01:53,480 --> 00:01:57,080 Speaker 1: Going to be supporting our major industries around the country. 33 00:01:57,800 --> 00:02:01,440 Speaker 1: UH and and we'll get through this. We've supported unemployment 34 00:02:01,480 --> 00:02:04,600 Speaker 1: insurance benefits for the states. We're working closely with governors 35 00:02:05,160 --> 00:02:08,359 Speaker 1: to make sure that those that are impacted have the 36 00:02:08,440 --> 00:02:13,239 Speaker 1: support UM to UH to see their family UH, to 37 00:02:13,400 --> 00:02:16,920 Speaker 1: see their businesses, and to see their communities through the 38 00:02:16,919 --> 00:02:20,520 Speaker 1: course of the coronavirus. And we really do believe that 39 00:02:20,600 --> 00:02:25,239 Speaker 1: as Americans put into practice, the President's coronavirus guidelines thirty 40 00:02:25,320 --> 00:02:29,360 Speaker 1: days to slow the spread. That will every single day 41 00:02:29,400 --> 00:02:33,680 Speaker 1: be one day closer to putting the coronavirus behind us. 42 00:02:34,080 --> 00:02:38,040 Speaker 1: Our priorities health. Our priority is the health and well 43 00:02:38,080 --> 00:02:41,200 Speaker 1: being and in the lives of the American people, supporting 44 00:02:41,200 --> 00:02:45,600 Speaker 1: our incredible healthcare workers. Uh. The President has every confidence 45 00:02:45,639 --> 00:02:49,079 Speaker 1: that as we help people through this time, UH, that 46 00:02:49,160 --> 00:02:52,120 Speaker 1: the economy will come back stronger than ever before. But 47 00:02:52,160 --> 00:02:55,560 Speaker 1: we'll stay focused on We'll stay focused on defeating this 48 00:02:55,639 --> 00:02:57,839 Speaker 1: virus and giving the American people and our health care 49 00:02:57,840 --> 00:03:00,840 Speaker 1: workers the tools to do just that. Let's turn to 50 00:03:00,919 --> 00:03:03,840 Speaker 1: that battle against what the President is called that invisible enemy, 51 00:03:03,880 --> 00:03:06,880 Speaker 1: that is the coronavirus. Bloomberg reported earlier this week that 52 00:03:06,880 --> 00:03:09,880 Speaker 1: there's a classified intelligence information that China actually sat on 53 00:03:09,919 --> 00:03:12,520 Speaker 1: the information about how bad it was. If you had 54 00:03:12,600 --> 00:03:15,120 Speaker 1: known when China did how bad it was, wouldn't have 55 00:03:15,200 --> 00:03:17,799 Speaker 1: made our battle plan against this enemy different. How many 56 00:03:17,840 --> 00:03:21,239 Speaker 1: American lives might have been saved? Well? What what? There's 57 00:03:21,280 --> 00:03:26,280 Speaker 1: no question that had China been more forthcoming and then 58 00:03:26,400 --> 00:03:31,080 Speaker 1: they have been about the impact and the scope in 59 00:03:31,120 --> 00:03:33,880 Speaker 1: the nature of the coronavirus, not just to the United 60 00:03:33,919 --> 00:03:37,400 Speaker 1: States but to the world. UH. That UH, that it 61 00:03:37,560 --> 00:03:40,600 Speaker 1: it would have made a difference. Um that being said, well, 62 00:03:40,640 --> 00:03:42,560 Speaker 1: we did UH. We did have a team on the 63 00:03:42,600 --> 00:03:45,080 Speaker 1: ground in February. We were able to look at their data. 64 00:03:46,000 --> 00:03:49,960 Speaker 1: We drew conclusions from that. And I have to tell you, 65 00:03:50,000 --> 00:03:54,440 Speaker 1: I think you know when the very first UH coronavirus 66 00:03:54,520 --> 00:03:56,960 Speaker 1: case emerged in this country, someone who had been in 67 00:03:57,160 --> 00:04:00,880 Speaker 1: China and contracted it there. In a man utter of days, 68 00:04:00,920 --> 00:04:04,000 Speaker 1: the President stood up the White House Coronavirus Task Force, 69 00:04:04,560 --> 00:04:09,280 Speaker 1: suspended all travel from China from there, would issue travel 70 00:04:09,320 --> 00:04:14,320 Speaker 1: advisories for South Korea UH and UH portions of Italy. 71 00:04:14,480 --> 00:04:18,719 Speaker 1: We began screening a dent of all passengers from both 72 00:04:18,800 --> 00:04:23,000 Speaker 1: of those countries, going on to suspend travel from Europe, 73 00:04:23,000 --> 00:04:26,919 Speaker 1: the UK Ireland. I think all along the way, the 74 00:04:26,960 --> 00:04:31,080 Speaker 1: American people have seen that this President has been willing 75 00:04:31,120 --> 00:04:35,599 Speaker 1: to take decisive and at times, david unprecedented action to 76 00:04:35,680 --> 00:04:39,159 Speaker 1: put the health of America first and UH and and 77 00:04:39,200 --> 00:04:41,919 Speaker 1: we are continuing to bring not only a whole of 78 00:04:42,000 --> 00:04:44,839 Speaker 1: government approach at every level federal, state, and local, but 79 00:04:44,960 --> 00:04:49,240 Speaker 1: also a whole of America approach. We're seeing American businesses 80 00:04:49,320 --> 00:04:52,960 Speaker 1: step forward as never before to meet this moment and 81 00:04:53,240 --> 00:04:56,080 Speaker 1: That's where we'll keep our focus. Mr President, I don't 82 00:04:56,080 --> 00:04:58,120 Speaker 1: think there's anyone in questions that the President you the 83 00:04:58,240 --> 00:05:00,240 Speaker 1: entire team of the Wades. They're doing everything and you 84 00:05:00,320 --> 00:05:02,040 Speaker 1: can at this point try us out this at the 85 00:05:02,080 --> 00:05:04,280 Speaker 1: same time, to some extent, it appears we've been playing 86 00:05:04,320 --> 00:05:06,400 Speaker 1: from behind. The virus has been ahead of us. Do 87 00:05:06,480 --> 00:05:08,719 Speaker 1: we have enough testing cable right now to get ahead 88 00:05:08,720 --> 00:05:10,760 Speaker 1: of the virus? I'm talking about not the hot spots 89 00:05:10,800 --> 00:05:13,480 Speaker 1: of New York, for example, or Detroit, increasingly in New Orleans. 90 00:05:13,560 --> 00:05:15,840 Speaker 1: Do we know? Do you know what are likely the 91 00:05:15,880 --> 00:05:19,080 Speaker 1: next hot spots? Well, what I can tell you, David, 92 00:05:20,400 --> 00:05:25,520 Speaker 1: is that because of the public private partnership we forged 93 00:05:26,320 --> 00:05:30,520 Speaker 1: with these vast commercial labs that your listeners know well, 94 00:05:30,720 --> 00:05:34,640 Speaker 1: the lab Core request others companies like Roche. We're now 95 00:05:34,680 --> 00:05:38,800 Speaker 1: testing over a hundred thousand Americans a day. But but 96 00:05:38,960 --> 00:05:44,200 Speaker 1: a very significant breakthrough happened this weekend again moving with 97 00:05:44,200 --> 00:05:49,200 Speaker 1: with record speed, the FDA approved Abbott Laboratories point of 98 00:05:49,360 --> 00:05:52,720 Speaker 1: care test. It's a It literally is a fifteen minute 99 00:05:52,760 --> 00:05:57,000 Speaker 1: test that people can have administered at their local doctor's office. 100 00:05:57,040 --> 00:06:01,400 Speaker 1: We're in the process of identifying the foul thousands of 101 00:06:01,600 --> 00:06:05,880 Speaker 1: Abbot Laboratory machines that are around the country. We're making 102 00:06:05,880 --> 00:06:10,440 Speaker 1: sure that that we're distributing those not just not just 103 00:06:10,520 --> 00:06:12,839 Speaker 1: the areas that are seeing an impact today, but but 104 00:06:13,040 --> 00:06:16,719 Speaker 1: we want to distribute those as Avid Laboratory is making 105 00:06:16,760 --> 00:06:20,960 Speaker 1: about fifty thousand tests a day now, um, we want 106 00:06:21,000 --> 00:06:24,680 Speaker 1: to distribute those to areas where we can do what 107 00:06:24,680 --> 00:06:28,880 Speaker 1: what you'd implied is the kind of surveillance testing that 108 00:06:28,920 --> 00:06:34,159 Speaker 1: would allow states that currently don't have a significant outbreak 109 00:06:34,720 --> 00:06:37,200 Speaker 1: to be forewarned and forearmed and be able to do 110 00:06:37,240 --> 00:06:40,240 Speaker 1: the kind of contact tracing that would limit uh the 111 00:06:40,320 --> 00:06:44,120 Speaker 1: exposure and the spread of the coronavirus. Vice President Mike Pence. 112 00:06:44,480 --> 00:06:46,880 Speaker 1: We are all looking for some hope, a glimmer of hope, 113 00:06:46,880 --> 00:06:49,800 Speaker 1: and a possible vaccine. So we talked this week if 114 00:06:49,880 --> 00:06:52,800 Speaker 1: Johnson and Johnson's Alex Corsi, who thinks he may have 115 00:06:53,000 --> 00:07:02,080 Speaker 1: a promising candidates. This is Walsting Week on Umber. This 116 00:07:02,520 --> 00:07:07,080 Speaker 1: is Bloomberg Will Street Week with David Weston from Bloomberg Radio. 117 00:07:07,440 --> 00:07:09,880 Speaker 1: Johnson and Johnson announced this week that it has a 118 00:07:09,880 --> 00:07:13,320 Speaker 1: promising candidate for a possible vaccine for the coronavirus, one 119 00:07:13,360 --> 00:07:15,760 Speaker 1: that could be in field trials as early as September, 120 00:07:16,080 --> 00:07:18,840 Speaker 1: and in success, if they have success, they could have 121 00:07:18,880 --> 00:07:21,240 Speaker 1: available for the public as early as the second quarter 122 00:07:21,480 --> 00:07:24,320 Speaker 1: of next year. I talked with Johnson and Johnson CEO 123 00:07:24,360 --> 00:07:26,800 Speaker 1: Alex s. Gorski, and I asked him just how hopeful 124 00:07:26,960 --> 00:07:30,120 Speaker 1: we should be. Obviously there's a lot of despair out 125 00:07:30,120 --> 00:07:32,400 Speaker 1: there right rightfully so when you think about how people 126 00:07:32,400 --> 00:07:35,240 Speaker 1: are being impacted by this. But I've also got to say, 127 00:07:35,240 --> 00:07:38,000 Speaker 1: I do think that there is some reason uh to 128 00:07:38,080 --> 00:07:40,920 Speaker 1: be optimistic when I see some of the partnering in collaboration. 129 00:07:40,960 --> 00:07:43,040 Speaker 1: And that's really what this is about your announcement about 130 00:07:43,040 --> 00:07:46,480 Speaker 1: partnering with the US government to accelerate the development of 131 00:07:46,480 --> 00:07:49,080 Speaker 1: our vaccine. Now, what I would always say in these 132 00:07:49,120 --> 00:07:51,760 Speaker 1: cases is, you know, we need to be thoughtful and 133 00:07:51,960 --> 00:07:55,680 Speaker 1: um where we're very hopeful as we look at our 134 00:07:55,760 --> 00:07:59,640 Speaker 1: early data that in these cases tends to be uh, 135 00:07:59,720 --> 00:08:02,400 Speaker 1: you know, quite correlated with what we would expect to 136 00:08:02,440 --> 00:08:05,560 Speaker 1: see as we take this into human testing in September 137 00:08:05,560 --> 00:08:07,840 Speaker 1: of this year. But we also know we need to 138 00:08:07,880 --> 00:08:11,200 Speaker 1: complete those other trials, and we'll be doing that at 139 00:08:11,240 --> 00:08:13,160 Speaker 1: the same time we're going to be ramping up a 140 00:08:13,280 --> 00:08:16,800 Speaker 1: production uh and and we'll have global production. We expect 141 00:08:16,800 --> 00:08:18,560 Speaker 1: to have that both in Europe as well as the 142 00:08:18,640 --> 00:08:21,440 Speaker 1: United States, and we expect to be in a position 143 00:08:21,480 --> 00:08:25,239 Speaker 1: by the first quarter UH to have a much better 144 00:08:25,960 --> 00:08:30,080 Speaker 1: perspective on the vaccine itself, on the kind of quantities 145 00:08:30,120 --> 00:08:31,880 Speaker 1: that we would have available. Our goal is to have 146 00:08:32,160 --> 00:08:35,199 Speaker 1: hundreds of millions available by that time UH, and then 147 00:08:35,320 --> 00:08:38,560 Speaker 1: obviously to work with regulators and other people around the world, 148 00:08:39,080 --> 00:08:42,400 Speaker 1: depending on where the coronavirus is at that time, to 149 00:08:42,440 --> 00:08:45,960 Speaker 1: try to make this accessible on an emergency basis. Alex, 150 00:08:45,960 --> 00:08:48,280 Speaker 1: give us a sense of what that testing process is. 151 00:08:48,280 --> 00:08:50,400 Speaker 1: Is it is the normal testing process you have for 152 00:08:50,440 --> 00:08:52,800 Speaker 1: another vaccine, or given the urgency and the size of 153 00:08:52,800 --> 00:08:54,840 Speaker 1: this problem, are there certain things that can be done 154 00:08:54,840 --> 00:08:58,120 Speaker 1: to expedite that. Well, David, look at my senses that 155 00:08:58,240 --> 00:09:01,120 Speaker 1: regulators both in Europe, in the United States, let alone 156 00:09:01,160 --> 00:09:04,199 Speaker 1: around the world, other health care authorities and the government 157 00:09:04,200 --> 00:09:07,840 Speaker 1: are doing everything they can to expedite this. At the 158 00:09:07,880 --> 00:09:09,880 Speaker 1: same time, we have to balance that to make sure 159 00:09:09,960 --> 00:09:15,240 Speaker 1: that we gather the efficacy the safety data that's so important. Before, 160 00:09:15,240 --> 00:09:17,320 Speaker 1: of course we would be using this on a large scale. 161 00:09:17,840 --> 00:09:21,280 Speaker 1: Now in this particular case, we're working with a platform. 162 00:09:21,760 --> 00:09:24,040 Speaker 1: So think of it as a vaccine, part of a 163 00:09:24,120 --> 00:09:28,840 Speaker 1: vaccine where we've got a significant experience in areas like stars, 164 00:09:28,960 --> 00:09:32,600 Speaker 1: things like a bowl of things like HIV. Uh. And 165 00:09:32,679 --> 00:09:36,120 Speaker 1: so we are confident in the safety data that we've 166 00:09:36,160 --> 00:09:39,000 Speaker 1: seen thus far. And it's the it's already the vector 167 00:09:39,040 --> 00:09:44,280 Speaker 1: has been used in elderly it's been used in younger children. Uh. 168 00:09:44,320 --> 00:09:47,359 Speaker 1: And so that gives us confidence from a safety perspective. 169 00:09:47,920 --> 00:09:50,800 Speaker 1: The early testing that we've done so far, that includes 170 00:09:50,800 --> 00:09:53,240 Speaker 1: a range of animal as well as in vivo testing, 171 00:09:53,640 --> 00:09:58,240 Speaker 1: also indicates that we should have an active vaccine as well. 172 00:09:58,520 --> 00:10:00,440 Speaker 1: But of course we need to complete the aisles that 173 00:10:00,440 --> 00:10:03,000 Speaker 1: will be doing in humans in the fourth quarter. Uh, 174 00:10:03,040 --> 00:10:06,800 Speaker 1: you know, before we develop the final data set. Uh. 175 00:10:06,840 --> 00:10:09,080 Speaker 1: You know, they would help us make that decision at 176 00:10:09,080 --> 00:10:12,240 Speaker 1: the appropriate moment. So to push ahead and push perhaps 177 00:10:12,240 --> 00:10:14,959 Speaker 1: further than we should. If you were successful in success 178 00:10:14,960 --> 00:10:17,200 Speaker 1: in the fourth quarter, when would we have a vaccine 179 00:10:17,240 --> 00:10:19,880 Speaker 1: available to people. So, David, look what we would intend 180 00:10:19,920 --> 00:10:22,920 Speaker 1: to do again, work closely with regulators so that by 181 00:10:23,000 --> 00:10:26,319 Speaker 1: late December or early January, we would expect to have 182 00:10:27,000 --> 00:10:29,960 Speaker 1: uh some type of interim analysis in our first and 183 00:10:30,040 --> 00:10:33,400 Speaker 1: human trials, and then at that point we would have 184 00:10:33,480 --> 00:10:36,280 Speaker 1: to take a look at that data set and its totality. 185 00:10:36,960 --> 00:10:39,680 Speaker 1: I think clearly we would be also looking at what 186 00:10:39,840 --> 00:10:42,440 Speaker 1: is that, how is the virus proceeding, and what kind 187 00:10:42,480 --> 00:10:45,320 Speaker 1: of state is it in around the world, uh, and 188 00:10:45,360 --> 00:10:48,480 Speaker 1: then make a decision. So I think at some point 189 00:10:48,920 --> 00:10:51,040 Speaker 1: uh in the second quarter, we could be in a 190 00:10:51,080 --> 00:10:53,599 Speaker 1: position again on an emergency basis, depending on where the 191 00:10:53,640 --> 00:10:56,719 Speaker 1: pandemic is going, where there could be some access to this, 192 00:10:57,000 --> 00:10:59,280 Speaker 1: and then we would expect that to ramp up significantly 193 00:10:59,320 --> 00:11:01,080 Speaker 1: over the rest of the year. Give us a sense, 194 00:11:01,080 --> 00:11:03,640 Speaker 1: because I know you're committing a lot of funds to production, 195 00:11:03,720 --> 00:11:06,760 Speaker 1: not just the development vaccine, but insuccessfully produce a lot 196 00:11:06,840 --> 00:11:09,560 Speaker 1: of it. How big could you get? How soon? If 197 00:11:09,600 --> 00:11:12,439 Speaker 1: in fact it does work well, you know you're You're right, David. 198 00:11:12,480 --> 00:11:15,480 Speaker 1: To have a vaccine to really work effectively, it takes 199 00:11:15,520 --> 00:11:18,080 Speaker 1: two components at least. I mean, first of all, it's 200 00:11:18,120 --> 00:11:22,160 Speaker 1: demonstrating efficacy and safety of your vaccine, and that's what 201 00:11:22,240 --> 00:11:25,840 Speaker 1: we're working very hard on literally as we speak. But 202 00:11:26,000 --> 00:11:29,199 Speaker 1: also as I said, some of our trials will start 203 00:11:29,240 --> 00:11:32,640 Speaker 1: in September and human will have some additional data by December. 204 00:11:33,080 --> 00:11:35,800 Speaker 1: But you also need to produce them in sufficient volumes 205 00:11:35,800 --> 00:11:38,480 Speaker 1: and quantity so that you can actually make a difference 206 00:11:38,520 --> 00:11:41,839 Speaker 1: in the broader population. And we're very fortunate and that 207 00:11:41,920 --> 00:11:48,360 Speaker 1: we have a very unique production capability where it gives 208 00:11:48,400 --> 00:11:53,560 Speaker 1: us the ability and relatively small containers to make very 209 00:11:53,679 --> 00:11:56,880 Speaker 1: large volumes in the hundreds of millions of doses of 210 00:11:56,960 --> 00:11:59,640 Speaker 1: this vaccine. Now again, let me be clear, we still 211 00:11:59,640 --> 00:12:02,840 Speaker 1: have more work to do to determine the exact yield 212 00:12:03,040 --> 00:12:07,000 Speaker 1: of these particular uh you know technologies UH and and 213 00:12:07,040 --> 00:12:10,200 Speaker 1: to compare that versus the safety and efficacy data. But 214 00:12:10,360 --> 00:12:13,320 Speaker 1: based upon the original work that we've done again, we 215 00:12:13,360 --> 00:12:16,560 Speaker 1: feel quite confident that we can be in the range 216 00:12:16,559 --> 00:12:20,120 Speaker 1: of hundreds of millions of vaccines as we would move 217 00:12:20,240 --> 00:12:23,360 Speaker 1: into the early part of two thousand one with a 218 00:12:23,440 --> 00:12:25,960 Speaker 1: goal to have a billion in place by the end 219 00:12:26,000 --> 00:12:27,800 Speaker 1: of the year. And and look, all of this will 220 00:12:27,880 --> 00:12:30,360 Speaker 1: only be possible with a partnership that we have with 221 00:12:30,400 --> 00:12:32,760 Speaker 1: the US government. We've been again with the f d A, 222 00:12:32,920 --> 00:12:36,720 Speaker 1: with HHS, with agencies like BARDA and SEPPI in Europe 223 00:12:37,360 --> 00:12:39,520 Speaker 1: UH and UH and frankly, the great work of our 224 00:12:39,559 --> 00:12:43,319 Speaker 1: scientists like Dr Paul staff Staffles and Johann von Houf, 225 00:12:43,360 --> 00:12:46,160 Speaker 1: as well as our supply chain making sure that we 226 00:12:46,200 --> 00:12:49,640 Speaker 1: can get adequate supplies again in Europe and the United 227 00:12:49,679 --> 00:12:52,480 Speaker 1: States and also in other locations around the world. How 228 00:12:52,559 --> 00:12:55,680 Speaker 1: complicating is it the incredible pressure being brought to bear 229 00:12:55,720 --> 00:12:58,439 Speaker 1: on the healthcare system overall? We just have really horrific 230 00:12:58,480 --> 00:13:01,160 Speaker 1: stories about various hospitals really being over text. Is that 231 00:13:01,240 --> 00:13:05,800 Speaker 1: affect your testing ability at all? No, not not directly. 232 00:13:05,840 --> 00:13:07,920 Speaker 1: And look what we do know that this is going 233 00:13:07,960 --> 00:13:10,600 Speaker 1: to be a multifaceted effort. I mean, number one, we 234 00:13:10,640 --> 00:13:14,400 Speaker 1: need to stay focused on social distancing great hygiene so 235 00:13:14,520 --> 00:13:18,520 Speaker 1: to prevent people from getting the disease in the first place. Next, 236 00:13:18,559 --> 00:13:20,640 Speaker 1: we need to continue to ramp up all of our 237 00:13:20,640 --> 00:13:23,560 Speaker 1: efforts in the hospitals. And here's where we've really got 238 00:13:23,559 --> 00:13:27,240 Speaker 1: our hospital heroes, the the physicians, the nurses, the aids 239 00:13:27,240 --> 00:13:29,719 Speaker 1: that are working full time to make sure that we've 240 00:13:29,760 --> 00:13:33,880 Speaker 1: got the test kits, the personal protective equipment, the ventilators, 241 00:13:33,920 --> 00:13:36,240 Speaker 1: the number of beds that are required, that we're doing 242 00:13:36,240 --> 00:13:38,760 Speaker 1: the right job of triaging these patients so we're not 243 00:13:38,840 --> 00:13:45,320 Speaker 1: consuming unnecessary protective equipment or beds or ventilators, and they 244 00:13:45,600 --> 00:13:48,720 Speaker 1: are just doing a tremendous job that clearly depending on 245 00:13:48,760 --> 00:13:50,960 Speaker 1: where you are. If you're in New York City right now, 246 00:13:51,400 --> 00:13:54,240 Speaker 1: it is literally all hands on deck doing everything we can, 247 00:13:54,960 --> 00:13:58,360 Speaker 1: and I think that's gonna be essential to continue now. 248 00:13:58,360 --> 00:14:01,800 Speaker 1: There's also some great work being done with medicines, with therapeutics, 249 00:14:02,320 --> 00:14:05,480 Speaker 1: and that whether it's anti virals, whether it's come would 250 00:14:05,520 --> 00:14:08,360 Speaker 1: go after the virus itself to stop it from replicating. 251 00:14:08,840 --> 00:14:11,120 Speaker 1: In other cases, there are drugs that how can you 252 00:14:11,160 --> 00:14:14,160 Speaker 1: boost up or frankly, in some cases, turned down your 253 00:14:14,200 --> 00:14:18,080 Speaker 1: body's immune system, uh to stop it from overreacting in 254 00:14:18,160 --> 00:14:22,240 Speaker 1: certain cases, or even new blood therapies, And I'm quite 255 00:14:22,280 --> 00:14:25,840 Speaker 1: confident that with all the great minds and the biopharmaceutical industry, 256 00:14:25,920 --> 00:14:28,680 Speaker 1: the billions of dollars that are being invested, that in 257 00:14:28,720 --> 00:14:31,800 Speaker 1: the coming months we should have a therapeutic. But then, 258 00:14:31,840 --> 00:14:34,600 Speaker 1: of course we're also going to need that vaccine to 259 00:14:34,800 --> 00:14:37,280 Speaker 1: stop and prevent this from occurring in the first place. 260 00:14:37,320 --> 00:14:40,400 Speaker 1: And so I think taking all of those measures in 261 00:14:40,440 --> 00:14:44,200 Speaker 1: a very comprehensive way is really the best bet that 262 00:14:44,240 --> 00:14:48,120 Speaker 1: we have on tackling the coronavirus and uh, you know, 263 00:14:48,200 --> 00:14:51,480 Speaker 1: making sure that uh we we can we can get 264 00:14:51,520 --> 00:14:55,160 Speaker 1: on that was Johnson and Johnson CEO Alex Scorski coming 265 00:14:55,240 --> 00:14:58,320 Speaker 1: up on Wall Street League. The coronavirus has changed our 266 00:14:58,360 --> 00:15:01,320 Speaker 1: world in many ways we can have aagine, but David Cordany, 267 00:15:01,480 --> 00:15:04,440 Speaker 1: the CEO Signa, thinks he does know one way. That's 268 00:15:04,480 --> 00:15:12,040 Speaker 1: next on Wall Street Week on Bloomberg. This is Bloomberg 269 00:15:12,040 --> 00:15:16,440 Speaker 1: Wall Street Week with David Weston from Bloomberg Radio. The 270 00:15:16,440 --> 00:15:19,160 Speaker 1: coronavirus has changed our world in all sorts of ways 271 00:15:19,200 --> 00:15:22,640 Speaker 1: we really don't understand. But David Cordanny is the CEO Signey, 272 00:15:22,680 --> 00:15:24,760 Speaker 1: thinks he does know one way it's changed, and that 273 00:15:24,960 --> 00:15:27,440 Speaker 1: is the advent of telemedicine, which has gone up dramatically 274 00:15:27,640 --> 00:15:30,120 Speaker 1: and he thinks will not go away. So we took 275 00:15:30,160 --> 00:15:34,200 Speaker 1: a step forward. After clearing the way for individuals to 276 00:15:34,400 --> 00:15:38,120 Speaker 1: cover their testing um clearing the way rolative to telemedicine 277 00:15:38,120 --> 00:15:41,520 Speaker 1: in ninety Day Pharmaceutical Supplies, we took a step forward 278 00:15:41,560 --> 00:15:43,720 Speaker 1: and announced that we are stepping in on behalf of 279 00:15:43,720 --> 00:15:47,120 Speaker 1: our customers to take care of their financial out of 280 00:15:47,160 --> 00:15:51,440 Speaker 1: pocket costs as relates to COVID nineteen treatment, whether that's 281 00:15:51,440 --> 00:15:55,120 Speaker 1: a cope, coinsurance or otherwise. We felt as though given 282 00:15:55,120 --> 00:15:57,760 Speaker 1: this unique time we find ourselves in the United States. 283 00:15:58,160 --> 00:16:00,520 Speaker 1: UM that step was warranted to provide the peace of 284 00:16:00,560 --> 00:16:03,800 Speaker 1: mind to the individuals we serve, so UM it's a 285 00:16:03,840 --> 00:16:07,120 Speaker 1: meaningful step forward. There's two additional items we announced as well. 286 00:16:07,320 --> 00:16:11,400 Speaker 1: UM we're transferring or redeploying UM several hundred of our 287 00:16:11,480 --> 00:16:16,160 Speaker 1: nurses and doctors to go support UM telemedicine infrastructure with 288 00:16:16,200 --> 00:16:19,320 Speaker 1: some of our partners as more individuals look to tell 289 00:16:19,360 --> 00:16:23,000 Speaker 1: the medicine to fulfill their needs, so we're expanding access 290 00:16:23,000 --> 00:16:26,280 Speaker 1: from that standpoint. And then lastly, David, we're standing up 291 00:16:26,720 --> 00:16:29,400 Speaker 1: UM with a partner of ours and an artificial intelligence 292 00:16:29,440 --> 00:16:32,960 Speaker 1: partner of ours, UM an online free capability to go 293 00:16:33,040 --> 00:16:37,520 Speaker 1: in and risk check your COVID nineteen or help symptoms, 294 00:16:37,840 --> 00:16:39,960 Speaker 1: help you determine whether or not you may be UM 295 00:16:40,000 --> 00:16:42,280 Speaker 1: confronting the disease or not, and try to help to 296 00:16:42,760 --> 00:16:45,800 Speaker 1: provide information to individuals before they may need to go 297 00:16:46,240 --> 00:16:49,560 Speaker 1: pursue testing or otherwise. So some really important announcements, all 298 00:16:49,600 --> 00:16:52,160 Speaker 1: putting our customers or patients front and center in the 299 00:16:52,240 --> 00:16:54,600 Speaker 1: decision making. Give us some sense if you can, at 300 00:16:54,600 --> 00:16:56,560 Speaker 1: the possible range of the co pay per At the 301 00:16:56,600 --> 00:16:58,600 Speaker 1: first part that you mentioned there, we hope that not 302 00:16:58,800 --> 00:17:01,320 Speaker 1: many a high percentage of your people actually get it, 303 00:17:01,440 --> 00:17:04,480 Speaker 1: but potentially how many people could that affect. We don't 304 00:17:04,480 --> 00:17:07,120 Speaker 1: have an estimate in terms of individuals. Obviously, the rate 305 00:17:07,119 --> 00:17:08,960 Speaker 1: and pace of that is going to be highly UM 306 00:17:09,240 --> 00:17:11,800 Speaker 1: dictated over the course in the next month or so 307 00:17:11,920 --> 00:17:13,960 Speaker 1: as it relates to the effectiveness of the U s 308 00:17:14,040 --> 00:17:18,440 Speaker 1: IS policy around social distancing and the like. From that standpoint, UM, 309 00:17:18,480 --> 00:17:21,760 Speaker 1: but we were clear this covers our commercial risk population 310 00:17:21,960 --> 00:17:26,440 Speaker 1: are commercial exchange population, our medicare advantage population, our medicaid 311 00:17:26,440 --> 00:17:30,440 Speaker 1: population UM, and then UM also our global clients for 312 00:17:30,680 --> 00:17:33,040 Speaker 1: those individuals are who are consuming care in the United 313 00:17:33,080 --> 00:17:37,480 Speaker 1: States UM, and then lastly for corporate ASO clients. We're 314 00:17:37,480 --> 00:17:40,760 Speaker 1: working with those clients to advise them on positioning they 315 00:17:40,760 --> 00:17:42,919 Speaker 1: should take UM as we serve them under behalf. So 316 00:17:42,960 --> 00:17:45,000 Speaker 1: we do not have a patient estimate at this point 317 00:17:45,000 --> 00:17:47,480 Speaker 1: in time. David, you mentioned to telemedicine, which is something 318 00:17:47,520 --> 00:17:49,440 Speaker 1: that we're talking about a lot these days, both because 319 00:17:49,480 --> 00:17:52,639 Speaker 1: possibles are way overcrowded, but also there's some risk and 320 00:17:52,720 --> 00:17:55,400 Speaker 1: just going to your doctor. Given the need for social distancing, 321 00:17:55,600 --> 00:17:58,640 Speaker 1: What are you seeing in terms of increases in telemedicin 322 00:17:58,880 --> 00:18:02,480 Speaker 1: that warranted you sending these physicians, these clinicians out to 323 00:18:02,560 --> 00:18:06,760 Speaker 1: help to David. So even before COVID nineteen, we as 324 00:18:06,760 --> 00:18:09,440 Speaker 1: a company, we're stepping forward saying we wanted to expand 325 00:18:09,480 --> 00:18:12,520 Speaker 1: what we call the UM front end of care UM 326 00:18:12,600 --> 00:18:15,600 Speaker 1: and bring more care and more services to individuals. So 327 00:18:15,880 --> 00:18:19,639 Speaker 1: in three different ways. One is UM telemedicine UM, both 328 00:18:19,760 --> 00:18:23,480 Speaker 1: medical as well as behavior health services UM. Second is 329 00:18:23,520 --> 00:18:26,840 Speaker 1: to attempt to re envision what could take place in 330 00:18:26,920 --> 00:18:29,840 Speaker 1: the home UM in terms of expanding what could take 331 00:18:29,840 --> 00:18:32,000 Speaker 1: place in the home. And then third is working with 332 00:18:32,040 --> 00:18:34,720 Speaker 1: our physician partners to expand the services that could take 333 00:18:34,720 --> 00:18:38,399 Speaker 1: place UM in a less invasive setting, more specifically in 334 00:18:38,400 --> 00:18:41,760 Speaker 1: a physician's office as opposed to an outpatient of facility 335 00:18:41,800 --> 00:18:44,040 Speaker 1: of the like. So the point is we've been ramping 336 00:18:44,080 --> 00:18:47,800 Speaker 1: towards an expansion of virtual care in in home care 337 00:18:48,160 --> 00:18:51,199 Speaker 1: in advance of COVID nineteen. Now to your core of 338 00:18:51,200 --> 00:18:56,880 Speaker 1: your question, individuals are more opened to experiencing care virtually 339 00:18:56,920 --> 00:19:00,600 Speaker 1: today than ever before because of COVID nineteen and worsening 340 00:19:00,720 --> 00:19:04,560 Speaker 1: the volumes ramp in quantums multiples of what they were 341 00:19:04,640 --> 00:19:07,560 Speaker 1: ramping at in advance. For both medical health as well 342 00:19:07,560 --> 00:19:10,840 Speaker 1: as behavior health, and that's what led us to redeploy 343 00:19:11,640 --> 00:19:14,879 Speaker 1: resources that we have nurses and doctors to partners like 344 00:19:15,119 --> 00:19:17,840 Speaker 1: m D Live and others UM to expand that reach. 345 00:19:17,880 --> 00:19:20,520 Speaker 1: And we think, um, this will be a societal change 346 00:19:20,520 --> 00:19:23,320 Speaker 1: that probably will continue to go forward long after COVID 347 00:19:23,400 --> 00:19:28,280 Speaker 1: nineteen because it's a convenient, safe, effective, evidence based way 348 00:19:28,359 --> 00:19:31,280 Speaker 1: to consume many aspects of care. David, we're all focused, 349 00:19:31,320 --> 00:19:35,000 Speaker 1: of course on COVID nineteen and the disease that is 350 00:19:35,000 --> 00:19:37,199 Speaker 1: spreading across the country. But I know, because you and 351 00:19:37,240 --> 00:19:39,120 Speaker 1: I have talked about it before, you're also concerned about 352 00:19:39,119 --> 00:19:41,840 Speaker 1: what you call whole person health. How are you addressing 353 00:19:41,840 --> 00:19:45,480 Speaker 1: that issue? Yeah, so, David, appreciate the whole personnel that 354 00:19:45,480 --> 00:19:48,919 Speaker 1: that is our orientation around trying to connect the mental 355 00:19:48,960 --> 00:19:51,840 Speaker 1: health and physical health aspects and just as a backdrop. 356 00:19:52,240 --> 00:19:54,640 Speaker 1: But we know today in the United States, as an example, 357 00:19:54,680 --> 00:19:57,440 Speaker 1: if an individual has a chronic disease, of which about 358 00:19:57,440 --> 00:20:00,480 Speaker 1: half of Americans confront at least one chronic disease, your 359 00:20:00,520 --> 00:20:03,080 Speaker 1: seven times more likely to have clinical depression. Then if 360 00:20:03,119 --> 00:20:05,560 Speaker 1: you don't have a chronic disease, but if that clinical 361 00:20:05,640 --> 00:20:09,480 Speaker 1: depression goes untreated, UM, you're more likely to have follow 362 00:20:09,520 --> 00:20:12,600 Speaker 1: on on set of additional medical or behavioral conditions. From 363 00:20:12,600 --> 00:20:16,560 Speaker 1: that standpoint, so we bring the behavior health resources into 364 00:20:16,600 --> 00:20:20,679 Speaker 1: our chronic or case management system from that standpoint. In 365 00:20:20,720 --> 00:20:23,720 Speaker 1: the current environment, UM, it's gonna get strained even further 366 00:20:23,960 --> 00:20:27,399 Speaker 1: because there's separation, UM that is taking place to your point, 367 00:20:27,600 --> 00:20:31,280 Speaker 1: and we know that separation increases loneliness, and loneliness increases 368 00:20:31,960 --> 00:20:35,400 Speaker 1: mental health challenges. So we're expanding and trying to press 369 00:20:35,440 --> 00:20:39,320 Speaker 1: ourselves relative too. As we talked about telemedicine for behavior health, 370 00:20:39,400 --> 00:20:43,840 Speaker 1: but also inbound interactions to our customers or patients, from 371 00:20:43,840 --> 00:20:47,000 Speaker 1: our nurses, from our behavior health professionals, from our health coaches, 372 00:20:47,200 --> 00:20:50,679 Speaker 1: to try to elevate and broaden the levels of engagement, 373 00:20:50,800 --> 00:20:53,600 Speaker 1: especially during this unique time. So I think it presses 374 00:20:53,920 --> 00:20:56,960 Speaker 1: the importance of engagement up even further. That was David 375 00:20:57,000 --> 00:21:01,120 Speaker 1: Gordanny of Signa telling up on Walsters. Brian Moyning had 376 00:21:01,119 --> 00:21:03,600 Speaker 1: a Bank of America gives us his views on what 377 00:21:03,720 --> 00:21:11,639 Speaker 1: lies ahead. This is Wall Street Week on Bloomberg. This 378 00:21:12,080 --> 00:21:16,639 Speaker 1: is Bloomberg Wall Street Week with David Weston from Bloomberg Radio. 379 00:21:16,880 --> 00:21:19,440 Speaker 1: There's no question that we're facing an economic crisis the 380 00:21:19,480 --> 00:21:21,720 Speaker 1: likes of which we've never seen before, and Bank of 381 00:21:21,760 --> 00:21:24,560 Speaker 1: America is right in the middle of that crisis. But 382 00:21:24,760 --> 00:21:27,399 Speaker 1: when I talked with Brian Moyninghan, the chairman and CEO 383 00:21:27,520 --> 00:21:29,480 Speaker 1: of Back America, he says, we need to start with 384 00:21:29,520 --> 00:21:32,439 Speaker 1: the health crisis and address that before we move on 385 00:21:32,520 --> 00:21:35,280 Speaker 1: to the economics. Well, I think it's clear it's a 386 00:21:35,800 --> 00:21:39,600 Speaker 1: it's a healthcare crisis. Um, there's a virus out there 387 00:21:39,640 --> 00:21:42,119 Speaker 1: that there we're all in the war and everybody in 388 00:21:42,119 --> 00:21:45,400 Speaker 1: the world has one common enemy and that's the UH 389 00:21:46,119 --> 00:21:48,240 Speaker 1: when the war against the virus, and now that is 390 00:21:48,280 --> 00:21:51,240 Speaker 1: a human human terran crisis, and that there's people that 391 00:21:51,280 --> 00:21:53,600 Speaker 1: are hit hit by it and sick, and we know 392 00:21:53,680 --> 00:21:55,239 Speaker 1: we've got to make sure they're taking care of it. 393 00:21:55,480 --> 00:21:56,520 Speaker 1: And then we've got to take care of the rest 394 00:21:56,560 --> 00:21:58,399 Speaker 1: of the society so they don't get it, which means 395 00:21:58,920 --> 00:22:01,280 Speaker 1: how you run your company, how you think about how 396 00:22:01,280 --> 00:22:03,800 Speaker 1: you employ your resources and stuff has changed dramatically over 397 00:22:03,800 --> 00:22:06,399 Speaker 1: the last few weeks. If we have gotten into social 398 00:22:06,440 --> 00:22:09,160 Speaker 1: distancing all to stop the virus and win the war 399 00:22:09,200 --> 00:22:12,840 Speaker 1: on that, when we win that the economic impact will 400 00:22:12,840 --> 00:22:15,159 Speaker 1: be mitigated. And that's what you could see in the 401 00:22:15,160 --> 00:22:18,719 Speaker 1: economy before it hit us, and that's what we expect 402 00:22:18,720 --> 00:22:21,000 Speaker 1: to see an economy after it hits us. So, how 403 00:22:21,000 --> 00:22:23,280 Speaker 1: have you reordered your priorities of Backham America. You just 404 00:22:23,320 --> 00:22:25,000 Speaker 1: said that if you run a company, you have to 405 00:22:25,000 --> 00:22:27,679 Speaker 1: re order your priorities for this particular crisis. Give us 406 00:22:27,680 --> 00:22:32,240 Speaker 1: an example of how you're reordering Bank of Americans priorities. Well, 407 00:22:32,040 --> 00:22:35,480 Speaker 1: we took a quick uh look and said, in the 408 00:22:35,520 --> 00:22:37,399 Speaker 1: end of day, our response has to be team centric. 409 00:22:37,480 --> 00:22:39,680 Speaker 1: In other words, to protect our team, get our team 410 00:22:39,840 --> 00:22:42,440 Speaker 1: in a position so they can support the customers even 411 00:22:42,440 --> 00:22:44,520 Speaker 1: if they're working from home. And it has to be 412 00:22:44,560 --> 00:22:46,920 Speaker 1: client centric. What we do for our customers, whether commercial 413 00:22:46,960 --> 00:22:50,400 Speaker 1: customers or consumer customers, and ultimately, how do we help society. 414 00:22:50,560 --> 00:22:52,720 Speaker 1: So if you think about the team, you know the 415 00:22:52,800 --> 00:22:55,919 Speaker 1: number one issue was how can you do all the 416 00:22:55,920 --> 00:22:58,200 Speaker 1: work that we do with this great team working every 417 00:22:58,240 --> 00:23:01,240 Speaker 1: day across this wonderful class form, but do it in 418 00:23:01,240 --> 00:23:03,919 Speaker 1: a way that's never been contemplated With a hundred fifty 419 00:23:03,920 --> 00:23:06,480 Speaker 1: thousand teammates went from working in the office to working 420 00:23:06,520 --> 00:23:10,000 Speaker 1: from home across four or five weeks. And you know 421 00:23:10,040 --> 00:23:14,080 Speaker 1: the logistics and that the network connectivity and embedded in 422 00:23:14,119 --> 00:23:17,760 Speaker 1: that the ability to distribute calls differently to have people 423 00:23:18,240 --> 00:23:20,640 Speaker 1: ultimately abilities to trade from home. But on the other hand, 424 00:23:20,680 --> 00:23:22,800 Speaker 1: we had to have forty or forty three branches. We 425 00:23:22,800 --> 00:23:24,440 Speaker 1: had to keep them open so cash to move in 426 00:23:24,520 --> 00:23:28,399 Speaker 1: society were an essential industry, as UH labeled by the 427 00:23:28,400 --> 00:23:30,879 Speaker 1: federal government that we have to be open and we 428 00:23:30,920 --> 00:23:32,800 Speaker 1: have to be able to keep discurities markets open, and 429 00:23:32,800 --> 00:23:35,480 Speaker 1: that takes centralized operations groups. So we had to also 430 00:23:35,880 --> 00:23:39,000 Speaker 1: reposition how our traders and our teammates and branches, and 431 00:23:39,000 --> 00:23:40,960 Speaker 1: our teammates and the call centers and our teammates in 432 00:23:40,960 --> 00:23:43,840 Speaker 1: the operations groups worked at the same time. So we 433 00:23:43,880 --> 00:23:47,320 Speaker 1: had this massive movement of hundreds of thousands of people 434 00:23:47,359 --> 00:23:49,400 Speaker 1: to home at the same time we had to reposition 435 00:23:49,400 --> 00:23:51,960 Speaker 1: everybody left to make sure they could operate well. So 436 00:23:52,240 --> 00:23:54,199 Speaker 1: when did it first really sink in with you that 437 00:23:54,200 --> 00:23:56,159 Speaker 1: you're going to have to do something as dramatic as 438 00:23:56,160 --> 00:23:58,400 Speaker 1: have a hundred and fifty thou people work from home. 439 00:23:58,400 --> 00:24:00,520 Speaker 1: I know we all saw you sit next to the president. 440 00:24:00,560 --> 00:24:02,160 Speaker 1: The president is right when you went down to visit 441 00:24:02,160 --> 00:24:03,959 Speaker 1: with him. I know you met with some of his staff. 442 00:24:04,800 --> 00:24:07,320 Speaker 1: Did that help drive home to you just how large 443 00:24:07,359 --> 00:24:09,639 Speaker 1: this crisis is and it's not going away. Well, I 444 00:24:09,680 --> 00:24:11,359 Speaker 1: think as we saw we saw a bit of this 445 00:24:11,440 --> 00:24:14,840 Speaker 1: set play out in our foreign operations, those of companies 446 00:24:14,840 --> 00:24:18,200 Speaker 1: like ourselves have operations and in China, in Hong Kong, 447 00:24:18,320 --> 00:24:21,840 Speaker 1: and the impact in those areas where your first informants 448 00:24:21,840 --> 00:24:23,919 Speaker 1: gave us a little bit of the belief of what 449 00:24:24,000 --> 00:24:25,680 Speaker 1: was going to happen Nined States at the time back 450 00:24:25,680 --> 00:24:29,000 Speaker 1: in January and the early February was you know, this 451 00:24:29,119 --> 00:24:31,440 Speaker 1: was out there and not ours. But as we went 452 00:24:31,440 --> 00:24:34,000 Speaker 1: through February and we went to some of the hurd 453 00:24:34,280 --> 00:24:37,280 Speaker 1: Dr Fauci speak at a conference, and then ultimately we 454 00:24:37,320 --> 00:24:40,080 Speaker 1: went in the White House in early March, the group 455 00:24:40,119 --> 00:24:42,960 Speaker 1: of bankers expecting to talk to the President about banking 456 00:24:43,000 --> 00:24:44,960 Speaker 1: and what we're doing for customers and things like that. 457 00:24:45,760 --> 00:24:47,960 Speaker 1: You have suddenly the first thing we did for half 458 00:24:48,040 --> 00:24:50,879 Speaker 1: the time was to hear from Dr Faucci, Dr Burkes, 459 00:24:51,119 --> 00:24:53,640 Speaker 1: and the head of the CDC talk about the healthcare crisis. 460 00:24:53,640 --> 00:24:56,280 Speaker 1: And that was the night where the President stopped the 461 00:24:56,320 --> 00:24:59,920 Speaker 1: travel from Europe. In the gravity of the situation, when 462 00:25:00,040 --> 00:25:04,359 Speaker 1: you heard of the impact that this administration was going 463 00:25:04,440 --> 00:25:07,399 Speaker 1: to have to economy, which was at that point almost 464 00:25:07,440 --> 00:25:09,560 Speaker 1: under you know, linear you could just extract plate what 465 00:25:09,640 --> 00:25:11,840 Speaker 1: you said, I'm gonna stop all this movement of people. 466 00:25:12,200 --> 00:25:14,840 Speaker 1: What will happen? You know, it really settled in on 467 00:25:14,920 --> 00:25:17,120 Speaker 1: me and and we were running the company of moving 468 00:25:17,160 --> 00:25:18,600 Speaker 1: people to work from home. We just said we have 469 00:25:18,680 --> 00:25:21,440 Speaker 1: to go hard and fast and and and we really 470 00:25:21,680 --> 00:25:24,280 Speaker 1: quickly moved from sort of alternating shifts and things like 471 00:25:24,320 --> 00:25:26,879 Speaker 1: that to complete work from the home. And then, you know, 472 00:25:26,880 --> 00:25:28,560 Speaker 1: then you start to see the human tolls start to 473 00:25:28,560 --> 00:25:31,879 Speaker 1: build up. The cases and the issues of people in 474 00:25:31,920 --> 00:25:34,040 Speaker 1: hospital and deaths switch are horrible, Brian, As you said, 475 00:25:34,080 --> 00:25:36,480 Speaker 1: this is first and foremost a healthcare crisis. The same time, 476 00:25:36,760 --> 00:25:38,440 Speaker 1: the best way to fight it is actually to shut 477 00:25:38,440 --> 00:25:41,320 Speaker 1: the economy down, which does real damage the economy. At 478 00:25:41,320 --> 00:25:43,439 Speaker 1: the same time, let's talk about that in particularly your 479 00:25:43,560 --> 00:25:46,960 Speaker 1: vantage into the economy through individuals and small businesses. We 480 00:25:47,040 --> 00:25:50,360 Speaker 1: now a plan through this cr S plan, the two 481 00:25:50,440 --> 00:25:53,080 Speaker 1: trillion dollar infusion of capital where a lot of small 482 00:25:53,080 --> 00:25:55,320 Speaker 1: businesses can get money fast. Is that going to happen? 483 00:25:55,560 --> 00:25:58,600 Speaker 1: When are you going to be flooded with applications? Well, 484 00:25:58,840 --> 00:26:02,280 Speaker 1: the me back up more broadly, so, if you think 485 00:26:02,320 --> 00:26:04,960 Speaker 1: about what we saw in our customer base as we 486 00:26:05,040 --> 00:26:08,600 Speaker 1: went through January and February, we saw with our consumers 487 00:26:08,640 --> 00:26:12,399 Speaker 1: spending money that much faster rate, double digit rate versus 488 00:26:12,720 --> 00:26:15,200 Speaker 1: two thousand nineteen. So the economy is probably going to 489 00:26:15,280 --> 00:26:17,920 Speaker 1: be grow faster than people projected. Would would have been 490 00:26:17,960 --> 00:26:20,119 Speaker 1: my guest. Then, as you went in the March and 491 00:26:20,119 --> 00:26:22,720 Speaker 1: you saw the situation, even even with the impact that 492 00:26:22,760 --> 00:26:25,480 Speaker 1: happened in March, especially ladder half of March, we'll still 493 00:26:25,760 --> 00:26:28,000 Speaker 1: we'll still see our consumers spending in then aggurate March, 494 00:26:28,040 --> 00:26:30,000 Speaker 1: and this will cost three trillion dollars in a year. 495 00:26:30,040 --> 00:26:32,520 Speaker 1: So it's not a small sample be up for March, 496 00:26:33,200 --> 00:26:35,320 Speaker 1: not a lot, but two or three something like that. 497 00:26:35,680 --> 00:26:37,200 Speaker 1: In the year today it will be up almost double 498 00:26:37,680 --> 00:26:41,200 Speaker 1: high high single digits. That is faster than last year 499 00:26:41,320 --> 00:26:44,320 Speaker 1: versus the year before. So the economy is on this path. 500 00:26:44,800 --> 00:26:47,480 Speaker 1: It just as you watch March playout has changed dramatically. 501 00:26:47,520 --> 00:26:50,879 Speaker 1: So what the Federal Reserve did is started to have 502 00:26:50,920 --> 00:26:53,280 Speaker 1: a lot of liquidity programs and stabilize the markets. What 503 00:26:53,880 --> 00:26:56,399 Speaker 1: Congress passed with it, the Stimus Bill, is an effort 504 00:26:56,440 --> 00:26:58,520 Speaker 1: to keep people employed and so number one in Bank 505 00:26:58,600 --> 00:27:00,520 Speaker 1: America We've told our teammates they have a job to 506 00:27:00,560 --> 00:27:02,959 Speaker 1: here and which is important, and many other employers are 507 00:27:03,000 --> 00:27:05,840 Speaker 1: told that. So that's extent we keep people employed, keep 508 00:27:05,880 --> 00:27:08,720 Speaker 1: cash into the household that will be terrific, and keep 509 00:27:08,800 --> 00:27:11,760 Speaker 1: a baseline economy growing. The other question is how to 510 00:27:11,840 --> 00:27:14,040 Speaker 1: help small businesses do that, and that's the program that's 511 00:27:14,080 --> 00:27:16,919 Speaker 1: been announced that they're going to implement. The key to 512 00:27:16,960 --> 00:27:18,640 Speaker 1: that is to how do we get that money how 513 00:27:18,720 --> 00:27:22,720 Speaker 1: quickly as the bank industry on behalf of of Congress 514 00:27:22,760 --> 00:27:26,679 Speaker 1: and the President and administration, and you know, they developed 515 00:27:26,680 --> 00:27:29,160 Speaker 1: a set of regulations they are coming out in their 516 00:27:29,160 --> 00:27:31,520 Speaker 1: out and process and they've been published or they're starting 517 00:27:31,560 --> 00:27:34,680 Speaker 1: to publish them. It'll be We just ask customers to 518 00:27:34,760 --> 00:27:37,000 Speaker 1: be patient. My advice to customers go back to their 519 00:27:37,000 --> 00:27:39,840 Speaker 1: banking who they already have a lending relationship with it 520 00:27:39,880 --> 00:27:42,280 Speaker 1: because the kind of documentation as a kind of documentation 521 00:27:42,280 --> 00:27:45,800 Speaker 1: you work with, those banks will have millions of customers 522 00:27:45,800 --> 00:27:47,960 Speaker 1: come to us and we'll put them through if they 523 00:27:48,000 --> 00:27:50,240 Speaker 1: desire into the program, and it will be very good 524 00:27:50,240 --> 00:27:52,040 Speaker 1: because they can continue to pay their employees that's what 525 00:27:52,080 --> 00:27:54,720 Speaker 1: the money is heared to do, and also cover some overhead. 526 00:27:54,720 --> 00:27:56,919 Speaker 1: Both of which are good things help these small business 527 00:27:56,960 --> 00:27:59,240 Speaker 1: for this tough time. And we'll do you know, we're 528 00:27:59,240 --> 00:28:01,840 Speaker 1: gonna we're set shop in activating thousands of people to 529 00:28:01,880 --> 00:28:04,320 Speaker 1: be able to take the application as a huge digital presence. 530 00:28:04,359 --> 00:28:06,399 Speaker 1: And you know, I think if everybody can just do 531 00:28:06,440 --> 00:28:08,520 Speaker 1: it in normally fashion, be good for very good for 532 00:28:08,520 --> 00:28:10,439 Speaker 1: the US economy. In order to get the money out 533 00:28:10,480 --> 00:28:12,200 Speaker 1: the door, which is that the small business needs to hold. 534 00:28:12,200 --> 00:28:14,040 Speaker 1: It's badly because they often don't have the money to 535 00:28:14,119 --> 00:28:16,400 Speaker 1: keep their employees on payroll. Are you willing to take 536 00:28:16,440 --> 00:28:18,200 Speaker 1: something of a leap of faith? Are other banks willing 537 00:28:18,200 --> 00:28:19,560 Speaker 1: to take a leap of faith because you're gonna be 538 00:28:19,680 --> 00:28:22,520 Speaker 1: have applications that normally maybe you wouldn't give a loan against. 539 00:28:22,560 --> 00:28:24,359 Speaker 1: But now the government saying, well that'll turn into a 540 00:28:24,359 --> 00:28:26,639 Speaker 1: grant if they keep their employees. Does that work? Do 541 00:28:26,640 --> 00:28:28,719 Speaker 1: you have enough faith that you'll actually deploy a lot 542 00:28:28,800 --> 00:28:31,920 Speaker 1: of cash that way? Yeah. For the to the clients 543 00:28:31,960 --> 00:28:35,479 Speaker 1: that it's a it's a straightforward a set of needed 544 00:28:35,480 --> 00:28:38,080 Speaker 1: documents um that they have to supply and if they 545 00:28:38,080 --> 00:28:39,880 Speaker 1: supply this documents they can get a loan and a 546 00:28:40,240 --> 00:28:42,760 Speaker 1: calculated amount based on the people they pay in the 547 00:28:42,760 --> 00:28:44,240 Speaker 1: first couple of months of the year and then it 548 00:28:44,280 --> 00:28:46,680 Speaker 1: can have a forgiveness to continue people employed after that. 549 00:28:47,240 --> 00:28:49,920 Speaker 1: And so for this particular element, it's government guaranteed. So 550 00:28:49,960 --> 00:28:52,240 Speaker 1: it's not a it's a government program and all as 551 00:28:52,320 --> 00:28:55,640 Speaker 1: we are as it's banking system and m peer colleagues 552 00:28:55,680 --> 00:28:58,480 Speaker 1: and stuff as a a you know, an implement of 553 00:28:58,840 --> 00:29:00,560 Speaker 1: a progress and let me go to the other side, 554 00:29:00,560 --> 00:29:02,400 Speaker 1: just so you know, because the strength of our banking 555 00:29:02,400 --> 00:29:04,600 Speaker 1: system and the capabilities in the capital we've had and 556 00:29:04,640 --> 00:29:09,160 Speaker 1: build up in the processes the industry. You know, one 557 00:29:09,160 --> 00:29:11,000 Speaker 1: of our trade groups announced a b p I that 558 00:29:11,480 --> 00:29:13,880 Speaker 1: the industry had funded more than four billion dollars in 559 00:29:13,920 --> 00:29:16,000 Speaker 1: commercial loans, most of that in the month of March. 560 00:29:16,400 --> 00:29:20,200 Speaker 1: Bank America has done seventy billion dollars loans. Commercial loans 561 00:29:20,360 --> 00:29:23,880 Speaker 1: in this month still have way more than our required 562 00:29:23,880 --> 00:29:26,960 Speaker 1: amount of capital or money, et cetera. So it's a 563 00:29:26,960 --> 00:29:29,040 Speaker 1: pretty interesting thing that the banking industry has been able 564 00:29:29,040 --> 00:29:31,160 Speaker 1: to step up because of the strength and supply to 565 00:29:31,200 --> 00:29:34,720 Speaker 1: the smme businesses and even large businesses a capital. While 566 00:29:34,760 --> 00:29:37,000 Speaker 1: the government's coming and helping in small businesses, which are 567 00:29:37,040 --> 00:29:38,840 Speaker 1: the hardest to get the money to in two thousand 568 00:29:38,840 --> 00:29:40,600 Speaker 1: and eight, two tho nine, the banks were in constant 569 00:29:40,600 --> 00:29:43,480 Speaker 1: communication with government authorities. When is the FED, whether the 570 00:29:43,520 --> 00:29:45,760 Speaker 1: Treasury or others. Is that going on? Now? What sort 571 00:29:45,760 --> 00:29:48,320 Speaker 1: of communications you're having back and forth with the federal government. Well, 572 00:29:48,760 --> 00:29:51,040 Speaker 1: it depends on the issue. But obviously and that in 573 00:29:51,160 --> 00:29:54,320 Speaker 1: terms of the sp A and Treasury program, we they 574 00:29:54,360 --> 00:29:55,840 Speaker 1: thought our opinions that had to make sure they could 575 00:29:55,840 --> 00:29:57,479 Speaker 1: get the money out in the orderly fashion, the right 576 00:29:57,520 --> 00:30:01,120 Speaker 1: way and carry out uh. You know, congress is intent 577 00:30:01,120 --> 00:30:03,840 Speaker 1: and Administration's intent, and so we're heavily involved in that. 578 00:30:04,000 --> 00:30:05,960 Speaker 1: On some of the liquidity and how the markets are working. 579 00:30:06,040 --> 00:30:08,960 Speaker 1: My colleague Tom Montage and his team, we are talking 580 00:30:08,960 --> 00:30:12,840 Speaker 1: to all different parts of the architecture, whether it's a 581 00:30:12,880 --> 00:30:15,000 Speaker 1: FETE or the Treasury to talk about what's going on 582 00:30:15,000 --> 00:30:17,320 Speaker 1: the markets, you know on a given day, and where 583 00:30:17,640 --> 00:30:20,080 Speaker 1: equity is needed, of where action is needed. And obviously 584 00:30:20,120 --> 00:30:21,960 Speaker 1: the FET is talking to us from what are we 585 00:30:22,040 --> 00:30:24,400 Speaker 1: seeing in the markets, and and so the OCC and 586 00:30:24,440 --> 00:30:26,880 Speaker 1: other regulators, you know, what are you seeing from clients? 587 00:30:27,440 --> 00:30:29,080 Speaker 1: What are you what are you hearing out there? Because 588 00:30:29,160 --> 00:30:31,680 Speaker 1: you want an instant transmission mechanism because a lot of 589 00:30:31,800 --> 00:30:34,120 Speaker 1: data people will look at you know, is lagging just 590 00:30:34,200 --> 00:30:36,200 Speaker 1: by the definition has to be put together and reported. 591 00:30:36,880 --> 00:30:38,600 Speaker 1: All of us in our own ways are trying to 592 00:30:38,640 --> 00:30:40,560 Speaker 1: live day to day, week to week and get through 593 00:30:40,600 --> 00:30:43,120 Speaker 1: this crisis. But I would like to look forward just 594 00:30:43,160 --> 00:30:45,280 Speaker 1: a little bit. Some economists are talking about now the 595 00:30:45,280 --> 00:30:49,160 Speaker 1: possibility demand destruction being permanent reduction and consumption because of 596 00:30:49,200 --> 00:30:51,600 Speaker 1: this crisis. As you look at it, is there a 597 00:30:51,680 --> 00:30:53,560 Speaker 1: risk of that? How large a risk is there? You know, 598 00:30:53,600 --> 00:30:55,000 Speaker 1: at the end of the the day. One of the things 599 00:30:55,080 --> 00:30:59,960 Speaker 1: that as great is if you think about that through 600 00:31:00,080 --> 00:31:03,560 Speaker 1: put in the US economy, Um, if we with the 601 00:31:03,560 --> 00:31:06,360 Speaker 1: amount of stimist, amount of fiscal support that's coming, the 602 00:31:06,360 --> 00:31:09,400 Speaker 1: amount of monetary support. If you look at economists where 603 00:31:10,600 --> 00:31:13,040 Speaker 1: down in the second quarter and then working away the 604 00:31:13,160 --> 00:31:15,240 Speaker 1: sheer amount of dollars and that at a five trillion 605 00:31:15,880 --> 00:31:19,120 Speaker 1: quarterly economy twenty trillion a year is overwhelmed by the 606 00:31:19,160 --> 00:31:21,600 Speaker 1: amount of support coming to the the markets. All that is 607 00:31:21,640 --> 00:31:24,200 Speaker 1: geared to getting south the other side this faster. There 608 00:31:24,280 --> 00:31:26,800 Speaker 1: was no structural issues in the economy. It's a healthcare crisis. 609 00:31:26,880 --> 00:31:28,920 Speaker 1: And I think if we mitigate that healthcare crisis, you 610 00:31:28,960 --> 00:31:31,120 Speaker 1: will see on the other side of this, you know, 611 00:31:31,440 --> 00:31:33,480 Speaker 1: a rebound, and that's what our economists say. So as 612 00:31:33,480 --> 00:31:36,280 Speaker 1: people have adjusted their second quarter down more due to 613 00:31:36,280 --> 00:31:38,560 Speaker 1: the unemployment and new claims last week, you know what 614 00:31:38,560 --> 00:31:40,880 Speaker 1: people are guessing and will happen this week. You know 615 00:31:40,920 --> 00:31:44,600 Speaker 1: there will be a deeper down draft. But mostly economists 616 00:31:44,640 --> 00:31:46,520 Speaker 1: that I see in our internal econoist believe on the 617 00:31:46,560 --> 00:31:49,440 Speaker 1: other side is a reversion back to where the economy 618 00:31:49,760 --> 00:31:52,080 Speaker 1: almost gets back to the same size you know, at 619 00:31:52,120 --> 00:31:54,160 Speaker 1: sometime the next year that it was prior to this, 620 00:31:54,240 --> 00:31:56,880 Speaker 1: which is a pretty fast turnaround. And so you know, 621 00:31:56,920 --> 00:31:59,720 Speaker 1: I think that that's that's the core belief because you're 622 00:31:59,720 --> 00:32:02,880 Speaker 1: not changing anything fundamentally about the business cycle, about what's 623 00:32:02,880 --> 00:32:05,160 Speaker 1: going on. You're saying, if you get by this virus, 624 00:32:05,400 --> 00:32:07,280 Speaker 1: it works. If you look at China right now, you're 625 00:32:07,320 --> 00:32:12,400 Speaker 1: seeing the data get stronger and because the because in 626 00:32:12,440 --> 00:32:15,640 Speaker 1: the fact they're on the other side of this situation 627 00:32:16,000 --> 00:32:18,120 Speaker 1: and you're seeing you know, we're seeing that when I 628 00:32:18,120 --> 00:32:19,880 Speaker 1: talked to our commercial clients that you know, they are 629 00:32:19,920 --> 00:32:23,960 Speaker 1: factories that they work with a seventy s we're seeing 630 00:32:24,480 --> 00:32:27,040 Speaker 1: goods and the ship coming out of China um and 631 00:32:27,040 --> 00:32:28,880 Speaker 1: you're seeing those factories start up and even in some 632 00:32:28,920 --> 00:32:31,240 Speaker 1: of the places you know that were most affected, you're 633 00:32:31,240 --> 00:32:33,520 Speaker 1: seeing people go out and shop. That was Brian Moynihan 634 00:32:33,680 --> 00:32:36,440 Speaker 1: sharing the CEO of Bank of America. This has been 635 00:32:36,480 --> 00:32:39,200 Speaker 1: another edition of Wall Street Week. See you next week.