WEBVTT - U.S. Is Losing the Battery Race 0:00:00.280 --> 0:00:02.920 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:02.920 --> 0:00:05.760 Bloomberg Quick Takes Tim Stanabek. We're here every day bringing 0:00:05.760 --> 0:00:08.280 you the latest news from the world's of business and finance, 0:00:08.320 --> 0:00:12.120 plus technology, politics, economics, all harnessing the power of Business 0:00:12.119 --> 0:00:15.600 Week reporters and editors, not to mention our journalists and 0:00:15.640 --> 0:00:18.080 analyst in more than one and twenty countries. You can 0:00:18.120 --> 0:00:21.720 download Bloomberg Business Week on iTunes, SoundCloud, or Bloomberg dot Com. 0:00:21.880 --> 0:00:23.600 You can also listen to our radio show at two 0:00:23.640 --> 0:00:26.320 pm Eastern Time on Bloomberg Radio or watch us on 0:00:26.360 --> 0:00:34.519 YouTube search Bloomberg Global News. So a bunch of virus headlines. 0:00:34.560 --> 0:00:37.080 California lifting its regional stay at home orders. We talked 0:00:37.080 --> 0:00:39.760 about New York City postponing vaccations at large sites they 0:00:39.800 --> 0:00:43.199 don't have enough doses. Maderna beginning human studies of a 0:00:43.240 --> 0:00:45.800 booster shop for its vaccine to help protect against a 0:00:45.840 --> 0:00:48.960 more transmissible South Africa virus variant. There's a lot of 0:00:48.960 --> 0:00:51.239 things going on, and we also have a ranking on 0:00:51.960 --> 0:00:55.000 the Bloomberg about kind of whose or where are the 0:00:55.000 --> 0:00:57.920 best places to basically ride out the pandemic. Can I 0:00:57.960 --> 0:00:59.960 just tell you hint hint, us isn't near the top. 0:01:00.480 --> 0:01:03.040 I was gonna say the same thing um at some 0:01:03.040 --> 0:01:04.920 familiar names at the top. If you've been following the 0:01:04.920 --> 0:01:09.280 pandemic for the past ten months, ten months, right, unbelievable meantime, 0:01:09.360 --> 0:01:12.120 US infectious to seize Chief Dr Anthony Fauci. You just 0:01:12.160 --> 0:01:15.160 heard a little bit of him. He says he's worried 0:01:15.160 --> 0:01:17.360 about a push to delay administering the second dose of 0:01:17.360 --> 0:01:21.199 COVID nineteen. He talked at a Virtual World Economic Form panel. 0:01:21.240 --> 0:01:23.839 It was moderated by Bloomberg's editor chief John mccothwaite. Here's 0:01:23.840 --> 0:01:28.320 a little bit of that. You don't get full efficacy 0:01:28.400 --> 0:01:31.920 until you get that second dose, and if you allow 0:01:32.560 --> 0:01:37.920 some optimal efficacy, you can actually immunologically select more for 0:01:38.160 --> 0:01:41.160 mutations when you do that. So that's the reason why 0:01:41.560 --> 0:01:43.959 you know, it may not be the case, but it 0:01:44.040 --> 0:01:46.600 gets risky, and that's the reason why we prefer to 0:01:46.680 --> 0:01:50.440 keep it on the time that the clinical trials said, right, 0:01:50.480 --> 0:01:53.880 the protocol calls for two shots in terms of maximum efficacy. 0:01:54.120 --> 0:01:57.840 That's of course, Dr Anthony Faucci. Let's get to our 0:01:57.840 --> 0:02:01.080 own Bloomberg News Health Science and Medical Technology reporter Michelle Cortez. 0:02:01.120 --> 0:02:04.400 She is with Tim and me on the phone in Minneapolis. Michelle. 0:02:04.440 --> 0:02:08.040 Great to have you here. Uh. Dr Anthony Faucci talking 0:02:08.080 --> 0:02:11.440 about two shots, I do wonder the more that you read, 0:02:11.480 --> 0:02:14.000 the more you research, you know, is it better for 0:02:14.120 --> 0:02:17.639 us to get a vaccine out to more people at 0:02:17.680 --> 0:02:20.240 this point considering the slow rollout, or is it, like 0:02:20.320 --> 0:02:22.200 Dr Fauci says, we got to just make sure we 0:02:22.320 --> 0:02:25.320 kind of max out the efficacy of these vaccines and 0:02:25.360 --> 0:02:29.560 do two shots. It really does matter what the goal 0:02:29.840 --> 0:02:33.280 is for the vaccination effort. If you're really trying to 0:02:33.320 --> 0:02:36.600 protect the people who are the most at risk of 0:02:36.720 --> 0:02:40.280 dying from the virus or those who are most likely 0:02:40.320 --> 0:02:44.239 to contracted, like those who are caring for people with coronavirus, 0:02:44.480 --> 0:02:47.079 then you really need to give those doses because that's 0:02:47.120 --> 0:02:49.640 where the evidence is, that's what we know works, and 0:02:49.680 --> 0:02:52.360 if you start going away from what we know work, 0:02:52.840 --> 0:02:55.239 you run the risk of it not working. And so 0:02:55.639 --> 0:02:58.960 having vaccinating half the people is something that doesn't work 0:02:59.040 --> 0:03:03.200 get you in a worse position then actually just buckling 0:03:03.200 --> 0:03:07.120 down and giving the full vaccination to that smaller number 0:03:07.120 --> 0:03:09.799 of people. Of course, if you're just trying to get 0:03:09.840 --> 0:03:11.920 to hurt immunity. If you're just trying to get to 0:03:13.280 --> 0:03:15.120 if you're just trying to get to some measure of 0:03:15.160 --> 0:03:18.120 protection for the greatest number of people, then you might 0:03:18.280 --> 0:03:21.520 want to gamble. So it really is how much of 0:03:21.520 --> 0:03:24.400 a gambler are you? Michelle Carol, That's such a good 0:03:24.480 --> 0:03:26.840 question earlier that we don't know the answer to, which 0:03:26.919 --> 0:03:30.160 is where is this bottleneck when it comes to where 0:03:30.200 --> 0:03:33.520 the vaccines are? Is it manufacturing? Is a distribution? Because 0:03:33.639 --> 0:03:36.480 here in New York City, the city is postponing vaccinations, 0:03:36.520 --> 0:03:39.960 as Carol mentioned, at large sites because of a doze shortage. 0:03:40.640 --> 0:03:44.080 Where are they? I think at this point what we're 0:03:44.080 --> 0:03:47.680 seeing is just dislocation as a general rule. If we 0:03:47.800 --> 0:03:53.400 did have massive stockpiles of the actual vaccine itself, I 0:03:53.440 --> 0:03:55.960 think that we would be able to start seeing these 0:03:56.000 --> 0:04:01.240 facilities in sports stadiums and amphitheaters and can you city centers, schools, 0:04:01.320 --> 0:04:03.640 post office those sorts of things. We would be able 0:04:03.680 --> 0:04:06.720 to ramp that up. But it's really hard when all 0:04:06.720 --> 0:04:08.720 the pieces are moving at the same time. You know, 0:04:08.760 --> 0:04:11.040 if you can get all the people, if you can 0:04:11.080 --> 0:04:14.680 get the location and the vaccinators and the vaccinators and 0:04:14.840 --> 0:04:19.200 everything to a spot but you don't have the vaccine itself, 0:04:19.520 --> 0:04:22.120 then that's not going to do you very good. When 0:04:22.120 --> 0:04:25.760 you do have the vaccine, but you have fluctuating numbers, 0:04:25.760 --> 0:04:28.880 how do you set up for that. So it's all 0:04:28.960 --> 0:04:31.640 of the moving parts that are moving at the same 0:04:31.680 --> 0:04:35.400 time that is causing the problems. And we're seeing different points, 0:04:35.440 --> 0:04:38.080 different issues everywhere. So if it was all just a 0:04:38.120 --> 0:04:41.760 matter of we don't have enough vaccine, then we would 0:04:41.760 --> 0:04:44.240 know just what we have to fix, what we have 0:04:44.320 --> 0:04:47.160 to address to fix the problem. Does that mean that 0:04:47.360 --> 0:04:50.280 there are potentially enough vaccines out there, but there may 0:04:50.279 --> 0:04:53.400 be sitting somewhere at the wrong place and not where 0:04:53.640 --> 0:04:57.760 they're really needed. I'm just trying to understand, right. I 0:04:57.800 --> 0:05:00.280 think that there are certain cases where you can look. 0:05:00.480 --> 0:05:03.600 For example, we understand, you know, in Florida, for example, 0:05:03.600 --> 0:05:05.839 they've only given out about half of the vaccine that 0:05:05.880 --> 0:05:09.080 they have. Now, that's not because they are just you know, 0:05:09.120 --> 0:05:11.359 sitting in in a warehouse and it's in some freezer 0:05:11.400 --> 0:05:15.480 somewhere they don't need it. It's because it's just in 0:05:15.520 --> 0:05:18.040 the process of going from one place to another place, 0:05:18.080 --> 0:05:20.080 they don't know exactly how much they're going to get. 0:05:20.520 --> 0:05:24.240 It's it's the uncertainty of the process. So every place 0:05:24.400 --> 0:05:27.680 you look at, and not every state, but every hospital, 0:05:27.760 --> 0:05:32.560 every county, there's probably differences in every particular area. And 0:05:32.600 --> 0:05:35.560 of course the challenge with this vaccine itself, the fact 0:05:35.560 --> 0:05:38.200 that you have to take it out of the freezer 0:05:38.480 --> 0:05:41.719 thought we constituted and get ready to administer it, and 0:05:41.760 --> 0:05:44.080 then you have to give it all at once, makes 0:05:44.080 --> 0:05:46.279 it so that people are trying to be very careful 0:05:46.360 --> 0:05:49.240 with what they're giving, what they're pulling out of the freezer. 0:05:49.720 --> 0:05:53.400 So it's if you have a little bit in different places. 0:05:53.440 --> 0:05:56.240 Everywhere that you look, there isn't one consistent answer to 0:05:56.279 --> 0:06:00.640 that question. Well, I mean I wish there were, right. 0:06:00.680 --> 0:06:04.080 If there were, maybe it would be in a better spot. Um, Michelle, 0:06:04.080 --> 0:06:06.240 there was a lot of vaccine news this morning, though, 0:06:07.000 --> 0:06:10.320 I'm wondering about this news that Moderna is planning to 0:06:10.480 --> 0:06:13.440 do studies of a booster tell protect against a more 0:06:13.520 --> 0:06:17.360 transmissible virus variant, this one coming from South Africa. When 0:06:17.400 --> 0:06:20.560 you saw that news, what was your reaction? Well, that 0:06:20.640 --> 0:06:23.720 was actually really interesting stuff. There's good news and bad 0:06:23.800 --> 0:06:27.880 news in this particular set of information that's coming up 0:06:27.880 --> 0:06:32.680 from Maderna. The problematic piece was the fact that the 0:06:32.880 --> 0:06:38.479 vaccine itself generates a less robust response then against the 0:06:38.520 --> 0:06:41.680 new variant then against the old variant. So if you're 0:06:41.680 --> 0:06:45.120 getting madernat vaccine, you want to make sure that whatever 0:06:45.640 --> 0:06:48.640 virus actually you come into contact with, you're going to 0:06:48.960 --> 0:06:51.719 be better if you have the original, the wild type virus. 0:06:52.240 --> 0:06:57.120 That being said, the the vaccine actually is still very potent, 0:06:57.240 --> 0:07:01.120 in fact, generates a stronger immune response than even the 0:07:01.240 --> 0:07:05.640 natural infection. Michelle, I want to get your thoughts on 0:07:05.680 --> 0:07:08.479 that headline that that Charlie just read. Governor Cuomo says 0:07:08.520 --> 0:07:11.160 New York is ready to ease rules after holiday spike ends. 0:07:11.160 --> 0:07:15.600 I gotta tell you, um, whenever I see I'm just 0:07:15.600 --> 0:07:18.200 gonna put it out. The headline came across and I 0:07:18.240 --> 0:07:20.400 was like, Carol, did you see this, because it feels like, 0:07:20.760 --> 0:07:24.320 you know, when we are starting to do better, we 0:07:24.320 --> 0:07:28.000 we don't want to do something, uh that could potentially 0:07:28.000 --> 0:07:31.520 make us do worst. Same thought about California, Tim, You're 0:07:31.560 --> 0:07:34.440 exactly right, and to point out to California as well, 0:07:34.800 --> 0:07:38.080 they're still in the middle of a pretty bad outbreak 0:07:38.120 --> 0:07:40.360 at the moment. So it's getting better, but it's getting 0:07:40.400 --> 0:07:44.160 better from a really terrible position. It does make you 0:07:44.200 --> 0:07:47.600 wonder how we're going to handle this outbreak. We've seen 0:07:47.640 --> 0:07:50.000 it over and over again. It's this roller coaster, right, 0:07:50.080 --> 0:07:52.800 the cases go up, people get worried, they start staying 0:07:52.880 --> 0:07:55.960 in the numbers come down, so they ease back up 0:07:56.080 --> 0:07:58.520 and then and then it just happens all over again. 0:07:58.640 --> 0:08:02.520 So it is this tension between being able to get 0:08:02.520 --> 0:08:06.280 out there, having the social stimulations, seeing people in person, 0:08:06.360 --> 0:08:10.240 getting our economies back going again, versus keeping the virus 0:08:10.280 --> 0:08:13.640 under control. Like send this wing that's been happening, and 0:08:13.680 --> 0:08:16.400 I just can't imagine it's going to end, probably not 0:08:16.560 --> 0:08:19.000 for another year or longer. Well, it just makes me think. 0:08:19.040 --> 0:08:21.120 I was telling Carol about this. Over the weekend. The 0:08:21.120 --> 0:08:25.720 New York Times had this interactive chart that they published 0:08:25.720 --> 0:08:28.840 that that showed, based on speaking to experts, if restrictions 0:08:28.880 --> 0:08:32.880 are lifted in February, twenty nine million additional total infections 0:08:32.920 --> 0:08:35.880 could happen, versus if current restrictions remain in place until 0:08:35.920 --> 0:08:39.360 late July, we could actually see us in the pandemic sooner. 0:08:39.440 --> 0:08:41.840 So it's like it's surprising to me, I know, there 0:08:41.960 --> 0:08:45.360 is this tension between making sure that we are doing 0:08:45.360 --> 0:08:46.959 what we can do to keep the economy going. But 0:08:47.000 --> 0:08:49.360 at the same time, if the virus is not under control, 0:08:49.440 --> 0:08:53.440 the economy is not going to get going, right. If 0:08:53.480 --> 0:08:56.240 the virus is still hanging over people, then they're going 0:08:56.280 --> 0:08:58.840 to be reluctant to to do certain things. And I 0:08:58.880 --> 0:09:02.280 believe that you'll see that even in certain areas where 0:09:02.320 --> 0:09:05.800 things like gyms and hairdressers, those sort of movie theaters 0:09:05.880 --> 0:09:08.560 are open. If you go there, often you're the only 0:09:08.600 --> 0:09:13.680 person in the entire movie theater because people are still worried. So, yeah, 0:09:13.800 --> 0:09:16.760 hopefully it won't be a complete, you know, flooding back 0:09:16.960 --> 0:09:22.760 of you know, the the economic engine powering everything, empowering 0:09:22.760 --> 0:09:26.360 that virus level right back up to previous heights. MICHELLEO, 0:09:26.440 --> 0:09:29.760 do you have some hope faith in that because we 0:09:29.760 --> 0:09:31.800 at least have a vaccine, that that is going to 0:09:31.920 --> 0:09:34.600 be that is a game changer. We've said that a 0:09:34.600 --> 0:09:39.280 million times. But even as economies or markets or cities 0:09:39.400 --> 0:09:41.560 or states begin to open up, that because we are 0:09:41.800 --> 0:09:44.560 at the same time giving out the vaccine, it's not 0:09:44.640 --> 0:09:47.679 a case that we slipped back to where we were 0:09:48.640 --> 0:09:51.240 lass summer less spring, like we won't go back there 0:09:51.320 --> 0:09:54.160 is that kind of the game changer here, even though 0:09:54.200 --> 0:09:56.560 we've got to still be careful. But that's kind of 0:09:56.600 --> 0:09:58.640 something that provides a little bit of a safety net 0:09:58.679 --> 0:10:01.760 here for us. I think the safety net is going 0:10:01.800 --> 0:10:04.920 to be on the severe disease piece of it. And 0:10:05.000 --> 0:10:07.840 we have really worked very hard in the US to 0:10:08.080 --> 0:10:11.440 vaccinate all of our seniors who are in nursing homes. 0:10:11.440 --> 0:10:14.080 And I would say that's one area that it has 0:10:14.120 --> 0:10:16.520 gone really well when you look at what Walgreens and 0:10:16.520 --> 0:10:19.960 CBS have done, not necessarily if you look at how 0:10:20.000 --> 0:10:23.040 they've actually tracked all the numbers and and how they've 0:10:23.400 --> 0:10:26.400 you know, specifically given it to exactly the right people. 0:10:26.400 --> 0:10:28.319 But if you just look at the numbers of people 0:10:28.360 --> 0:10:31.840 that they have gotten to, most nursing homes have had 0:10:32.000 --> 0:10:35.480 folks come in from CBS and Walgreens. Most nursing home 0:10:35.520 --> 0:10:38.679 patients are getting these vaccines, many of them have gotten 0:10:38.720 --> 0:10:42.920 two of them. That's a reduction and serious disease. And 0:10:43.000 --> 0:10:44.839 that's the people who are going to die. So I 0:10:44.880 --> 0:10:47.920 would say we might see cases still high, but we're 0:10:48.000 --> 0:10:50.120 unlikely to see the deaths at the rates that we've 0:10:50.160 --> 0:10:53.679 been seeing. That's significant. I like this, Yeah, this is good. 0:10:53.720 --> 0:10:55.679 That's what I'm trying to understand like a right kind 0:10:55.720 --> 0:10:59.160 of just at least some progress moving forward. Michelle, Thank 0:10:59.200 --> 0:11:01.640 you so much. Michelle Corte, Senior Health Science and Medical 0:11:01.640 --> 0:11:04.679 Technology reporter at Bloomberg News, on the phone from Minneapolis. 0:11:04.880 --> 0:11:08.839 This is Bloomberg Business Week with Carol Masser and Bloomberg 0:11:08.920 --> 0:11:12.960 Quick Takes Tim Stinovich from Bloomberg Radio. Well, the annual 0:11:12.960 --> 0:11:14.640 of the year I had issia of Bloomberg Business Week. 0:11:14.640 --> 0:11:17.720 It is on newsstands, now online and on the Bloomberg 0:11:18.160 --> 0:11:21.000 and in it a deep dive into batteries from Asian 0:11:21.000 --> 0:11:23.600 manufacturers in the global race, to batteries hidden in around 0:11:23.600 --> 0:11:26.200 New York City and the startups that are kind of 0:11:26.200 --> 0:11:28.880 blazing a new way forward. There's so many different angles. 0:11:29.240 --> 0:11:31.440 We want to cover some of them. Bloomberg News editor 0:11:31.520 --> 0:11:33.680 Demitri Cassoneds is with us on the phone in New 0:11:33.760 --> 0:11:36.800 York City, along with Bloomberg Business Week editor Joel Weber 0:11:36.840 --> 0:11:40.360 on the access line in Brooklyn. Batteries. Joel, you guys 0:11:40.400 --> 0:11:43.079 really kind of got into it. Yeah. I even did 0:11:43.120 --> 0:11:45.400 a cover line there's a great future and batteries. Think 0:11:45.440 --> 0:11:48.400 about it, which if you're if you remember the graduate 0:11:48.559 --> 0:11:53.240 U graduated but with plastic and now it's batteries but demitra. 0:11:53.320 --> 0:11:57.280 Why is this the year of the battery? Well, you know, 0:11:57.480 --> 0:12:00.319 the batteries are in everything, right, ideal a lot with 0:12:00.720 --> 0:12:04.360 electric automobiles and vehicles, but batteries power everything. And so 0:12:04.480 --> 0:12:09.280 we're seeing massive factories coming online around the world. The 0:12:09.320 --> 0:12:12.480 Asian companies have really dominated this in recent years, and 0:12:12.520 --> 0:12:15.000 they're making a very big play this year with battery 0:12:15.040 --> 0:12:18.000 factories that are going to open in Europe and even 0:12:18.000 --> 0:12:21.040 in the US. And finally, others are kind of opening 0:12:21.080 --> 0:12:24.079 their eyes to this out of necessity in many other reasons, 0:12:24.440 --> 0:12:26.600 and so we're starting to see more of a real 0:12:26.840 --> 0:12:31.079 heated competition that's going to emerge among European battery producers, 0:12:31.320 --> 0:12:35.480 Asian battery producers, and um, we think American battery producers 0:12:35.520 --> 0:12:39.959 as well. Well. That's interesting because the US is definitely 0:12:40.720 --> 0:12:43.800 not in the lead, and the you know, the Asian 0:12:43.840 --> 0:12:47.040 companies are the ones that we're kind of we think 0:12:47.040 --> 0:12:49.880 of first and foremost, like C A. T. L UM 0:12:49.960 --> 0:12:54.960 and they're eyeing Europe over US for expansion. What's that about. Well, 0:12:55.000 --> 0:12:57.400 you know, you see what's happening right with Volkswagen and 0:12:57.440 --> 0:13:00.600 all the European automakers who are coming out with new 0:13:00.640 --> 0:13:03.400 models of electric vehicles, and in check sales figures for 0:13:03.440 --> 0:13:06.640 autos in Europe last year, we're definitely down, but in 0:13:06.679 --> 0:13:09.000 the e V sector they were up quite a bit, 0:13:09.080 --> 0:13:11.280 and that's only a trend line that's going to keep 0:13:11.280 --> 0:13:15.360 going up, up, up, So that's a primary factor motivating it. 0:13:15.440 --> 0:13:18.600 You'll see partnerships that are struck between the carmakers and 0:13:18.600 --> 0:13:21.520 the battery makers. Um. Uh it's c A t L 0:13:21.559 --> 0:13:24.080 as we mentioned, LG is another one. LG is also 0:13:24.160 --> 0:13:27.480 one of our companies on the sixty Companies to Watch list, uh, 0:13:27.840 --> 0:13:29.880 Korean companies that are big in the game kind of 0:13:29.960 --> 0:13:33.480 sonic as well. UM. And so what you're seeing is 0:13:33.559 --> 0:13:36.360 that the automakers are going to start thinking about whether 0:13:36.400 --> 0:13:38.600 this is an area that they should be getting into, 0:13:38.800 --> 0:13:41.920 as Tesla does in terms of really developing things themselves. 0:13:41.920 --> 0:13:44.880 I mean, they partner certainly with companies, but there's so 0:13:44.960 --> 0:13:48.679 much opportunity because of where we're seeing electric vehicles going 0:13:49.080 --> 0:13:53.320 and also massive battery storage systems right to deal with UM, 0:13:53.760 --> 0:13:57.200 greater security in terms of grids and power lines. That's 0:13:57.240 --> 0:13:59.160 where we're seeing a lot of here in the United States, 0:13:59.480 --> 0:14:02.320 batteries systems are really going to be the key to 0:14:02.480 --> 0:14:06.559 help US deal with very weak and compromise grid systems 0:14:06.559 --> 0:14:09.600 across the country. Okay, so let's talk more about America, 0:14:09.679 --> 0:14:12.840 because distant third place in the in the global race 0:14:13.400 --> 0:14:16.440 goes to the US, but there is a chance that 0:14:16.640 --> 0:14:18.360 you know, America could catch up. What does that have 0:14:18.440 --> 0:14:22.280 to look like? Well, you know, I think that we 0:14:22.400 --> 0:14:25.040 just haven't thought about it as much, and because again 0:14:25.400 --> 0:14:27.560 we weren't really thinking about these as a way to 0:14:27.800 --> 0:14:30.360 both powered grid systems. But also if we're talking about 0:14:30.360 --> 0:14:34.320 e VS, the US market is really very far behind 0:14:34.320 --> 0:14:37.600 in this right. I mean, we're maybe two percent of 0:14:37.600 --> 0:14:40.920 auto sales in the US are electric vehicles, So batteries 0:14:40.960 --> 0:14:44.960 have not been front and center part of what we're doing. 0:14:45.000 --> 0:14:48.880 But we have the resources, we have the technology. You know, 0:14:49.000 --> 0:14:52.840 we have areas that are rich in lithium deposits, so 0:14:52.920 --> 0:14:56.120 we have the ability to develop a really strong industry 0:14:56.120 --> 0:14:58.240 in this and there have been a lot of reports 0:14:58.240 --> 0:15:00.680 in the last six to eight months that have indicated 0:15:00.720 --> 0:15:03.760 that we're competitiveness sake, this is going to be an 0:15:03.760 --> 0:15:05.560 area that the US is going to have to develop, 0:15:05.680 --> 0:15:08.440 not just jobs wise and economy wise, but again keeping 0:15:08.480 --> 0:15:11.800 the battery production close to where you're doing the other 0:15:11.880 --> 0:15:14.440 things that are going to need the batteries because all 0:15:14.480 --> 0:15:17.640 the trade issues and everything else are complicating to some 0:15:17.760 --> 0:15:21.680 degree the ability to effectively like source your batteries from 0:15:21.760 --> 0:15:24.400 you know, companies and countries that we're having a lot 0:15:24.400 --> 0:15:26.840 of trade issues with. For example, listen, I'm into local 0:15:26.920 --> 0:15:29.000 lettuce and I'm into local batteries. I'm just gonna put 0:15:29.000 --> 0:15:32.600 it out there. Um so, right right, So Dmitri talked 0:15:32.640 --> 0:15:34.920 to us. One of the stories I thought was really 0:15:34.960 --> 0:15:37.840 interesting was about all the batteries that are hidden across 0:15:38.000 --> 0:15:42.520 New York City. What's that about? So that's very much 0:15:42.560 --> 0:15:46.560 about um, you know, weak sort of grid and um 0:15:46.560 --> 0:15:49.640 a need to bolster what we have in the way 0:15:49.640 --> 0:15:53.240 of power supply, and those are battery systems that are 0:15:53.280 --> 0:15:55.640 going to becoming. What we show you online and in 0:15:55.680 --> 0:16:00.680 the magazine are photos of location that MG micro rig Networks, 0:16:00.680 --> 0:16:04.040 the company that's behind us, have actually secured and paid for, 0:16:04.480 --> 0:16:06.920 and between now and the end of the year, massive 0:16:06.960 --> 0:16:10.400 battery systems will be installed in those locations. And what 0:16:10.440 --> 0:16:13.800 they're doing is identifying locations that are like abandoned lock 0:16:14.040 --> 0:16:18.040 abandoned parking lots, rooftops that are massive enough, and in 0:16:18.200 --> 0:16:21.360 areas where again where the greatest compromised because they're in 0:16:21.400 --> 0:16:25.120 flood zones because they kept badly by storms. And so 0:16:25.360 --> 0:16:27.560 we're going to start to see and they're multi use 0:16:27.680 --> 0:16:30.040 kind of battery systems where you see a lot of 0:16:30.080 --> 0:16:33.600 batteries on the top level of something powering you know, 0:16:33.760 --> 0:16:37.600 our needs, and also like car chargers underneath, because we 0:16:37.680 --> 0:16:39.640 are expecting that more and more people are going to 0:16:39.760 --> 0:16:43.160 start to buy electric vehicles and need locations to power 0:16:43.200 --> 0:16:46.720 their cards exactly. One other interesting thing that is covered 0:16:46.760 --> 0:16:49.160 in this week's issue of Bloomberg Business Week when it 0:16:49.160 --> 0:16:53.080 comes to batteries is investors are seeing chip makers and 0:16:53.160 --> 0:16:57.120 battery makers is safer than investments in companies like Tesla 0:16:57.560 --> 0:17:01.040 and Neo. UM. So they're still seeing chip makers and 0:17:01.200 --> 0:17:04.760 battery makers specifically as a way to get exposure to 0:17:04.800 --> 0:17:08.960 electric vehicles without the volatility of Tesla. Yeah, I mean, 0:17:09.000 --> 0:17:11.480 I think also without the volatility maybe of some of 0:17:11.520 --> 0:17:14.480 the companies where there have been valuations and a lot 0:17:14.520 --> 0:17:18.920 of activity um and and you know, there isn't something 0:17:19.080 --> 0:17:23.000 as let's say, really certain and stable that you're looking 0:17:23.040 --> 0:17:25.520 to invest in. I mean with batteries, there's an actual 0:17:25.640 --> 0:17:28.440 thing that's getting produced. Um. A lot of the ones 0:17:28.480 --> 0:17:32.199 that they're investing in already have operations set up, factories, 0:17:32.240 --> 0:17:35.679 created materials that they've sourced, the natural materials that are 0:17:35.720 --> 0:17:37.919 necessary and they're making the batteries. And again there is 0:17:37.920 --> 0:17:40.760 such a demand because we're not talking just about cars. 0:17:41.160 --> 0:17:44.080 We think about the war world and what around you 0:17:44.200 --> 0:17:47.399 was powered by a lithium ion battery, whether it's a phone, 0:17:47.680 --> 0:17:50.000 whether it's a computer, whether it's a lamp on your 0:17:50.040 --> 0:17:52.879 death that are now increasingly a fan. I mean, you 0:17:52.880 --> 0:17:55.360 know all the smart home stuff. I mean, there's a 0:17:55.400 --> 0:17:57.760 ton of stuff, and there's such a need and such 0:17:57.760 --> 0:18:00.440 a demand. Um. And I think that there's seeing what's 0:18:00.480 --> 0:18:03.600 happening with these companies and saying this is definitely something 0:18:03.720 --> 0:18:06.879 we want to invest in. So and you've gotta be 0:18:06.960 --> 0:18:10.320 quick here, demtro Is there anybody anybody who can make 0:18:10.359 --> 0:18:15.280 money on disassembling old batteries? Yet? That's a Kyle Stock 0:18:15.359 --> 0:18:18.280 story that I thought was really interesting. Well, if you 0:18:18.359 --> 0:18:20.879 believe the company that we one of the company's we 0:18:21.000 --> 0:18:24.480 profile is Redwood Materials. Sounded by a former Tesla executive, 0:18:24.600 --> 0:18:27.359 James strubble, and they would say, yeah, and we do 0:18:27.440 --> 0:18:29.800 believe that there is because we're not seeing just redwood 0:18:29.800 --> 0:18:33.680 in this. Several companies are actively developing the process for 0:18:33.800 --> 0:18:38.280 recycling batteries because all these electric vehicles, within ten years, 0:18:38.280 --> 0:18:40.200 their batteries are going to be dead, so we gotta 0:18:40.240 --> 0:18:41.879 do something with that. Yeah, this is going to be 0:18:41.920 --> 0:18:44.600 important part of the equation otherwise we're no better off. Um. 0:18:44.720 --> 0:18:48.239 Great stuff, guys, and it's such a must read all 0:18:48.280 --> 0:18:51.440 these different angles. Demetro Cassini's editor Bloomberg News, Joe Weber, 0:18:51.560 --> 0:18:54.320 editor Bloomberg Business Week. Go to the magazine check it out. 0:18:54.840 --> 0:18:58.919 This is Bloomberg Business Week with Carol Masser and Bloomberg 0:18:59.000 --> 0:19:02.960 Quick Takes. Tim's GENEVIEC on Bloomberg Radio. This is Bloomberg 0:19:02.960 --> 0:19:05.280 Business Week gets brought to you by SEI Crises bring 0:19:05.280 --> 0:19:09.200 out the best in people, character, community, partnership together as one. 0:19:09.400 --> 0:19:11.719 Se I go to se i C dot com slash 0:19:12.040 --> 0:19:15.240 i m s for more information. So Tim, no doubt 0:19:15.280 --> 0:19:18.480 about it. Former President Trump and current President Buying two 0:19:18.600 --> 0:19:22.439 very different individuals. They're expected to lead pretty differently as well. However, 0:19:22.560 --> 0:19:25.400 when it comes to China, they might be a little 0:19:25.440 --> 0:19:27.879 bit more similar when it comes to policy, so says 0:19:27.960 --> 0:19:31.320 Andy Brown Bloomberg New Economy, saying that Biden is Trump 0:19:31.400 --> 0:19:34.600 two point oh when it comes to China. Andy joins 0:19:34.640 --> 0:19:36.639 us now on the phone from New York City. He's 0:19:36.720 --> 0:19:40.920 editorial director of Bloomberg New Economy. Um, So, Andy, why 0:19:40.920 --> 0:19:42.840 do you say that that Biden is looking like Trump 0:19:42.880 --> 0:19:45.119 two point oh when it comes at least relations to 0:19:45.280 --> 0:19:49.399 relations with China. So, of course it's been clear for 0:19:49.440 --> 0:19:53.000 a long time that China is now a bipod is 0:19:53.040 --> 0:19:58.680 an issue UM in the United States in Congress. But 0:19:58.760 --> 0:20:02.280 I think what really dramatically brought this to my attention 0:20:03.000 --> 0:20:05.960 was the way that on his way out the door, 0:20:06.240 --> 0:20:12.159 Mike Pompeio, the now former Secretary of State, designated China 0:20:12.280 --> 0:20:18.400 to be a perpetrator of genocide a genocidal state, and 0:20:18.480 --> 0:20:25.240 the incoming Biden administration UM, including Tony Lincoln his replacement, 0:20:25.720 --> 0:20:31.359 concurred with that assessment. This is pretty dramatic stuff, and 0:20:31.400 --> 0:20:35.000 nobody quite knows what it means for the United States 0:20:35.000 --> 0:20:40.840 to formally designate China as a genocidal regime, what it 0:20:40.920 --> 0:20:44.520 means to tie China with the same brush as for instance, 0:20:44.680 --> 0:20:48.920 Paul Potts Cambodia. But I'm sure that it has pretty 0:20:48.960 --> 0:20:51.840 far reaching consequences. I think we can be very sure 0:20:51.920 --> 0:20:54.400 of that. Well, Andy, what does it tell us then, 0:20:54.480 --> 0:20:59.040 potentially about how a Biden administration might approach its relationship 0:20:59.119 --> 0:21:01.840 to China more like what we saw with the Trump 0:21:01.840 --> 0:21:07.439 administration versus different So the first thing that has to 0:21:07.440 --> 0:21:10.920 be said is it's going to be a differentiated approach 0:21:11.080 --> 0:21:14.919 to the extent that the Biden administration is committed to 0:21:15.040 --> 0:21:18.359 working with allies. Not whether those allies are prepared to 0:21:18.400 --> 0:21:21.960 go along with the United States um A US that 0:21:22.080 --> 0:21:25.280 they still and will not trust, don't trust and will 0:21:25.320 --> 0:21:29.399 not trust perhaps for many years, is another question. But 0:21:29.440 --> 0:21:32.200 I think it's going to be a smarter approach um 0:21:32.720 --> 0:21:36.840 that includes friends and allies. But the substance um of 0:21:36.880 --> 0:21:41.159 the Trump pushback against China, I think substantially remains the 0:21:41.160 --> 0:21:44.920 there is no going back to the former policy pursued 0:21:44.960 --> 0:21:50.040 by what administration after another, that policy of engagement with China, 0:21:50.119 --> 0:21:52.960 which failed to deliver on its promise, which was supposed 0:21:53.000 --> 0:21:56.280 to be a more open liberal economy um and A 0:21:57.320 --> 0:22:00.840 and a more democratic or representative political system. So what 0:22:00.880 --> 0:22:04.000 does this mean for for American business because what we've 0:22:04.040 --> 0:22:06.320 seen in the last few years, more than just the 0:22:06.359 --> 0:22:09.800