WEBVTT - Bloomberg's Rye on Congressional Fight Over Zika Funding(Audio)

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<v Speaker 1>Global business news twenty four hours a day. If Bloomberg

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<v Speaker 1>I'm Charlie Pellott. A mixed picture for equities right now.

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<v Speaker 1>The downin s MPR lower nestack is Hilt's head. Right

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<v Speaker 1>over to the first word, breaking news deaths for today's

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<v Speaker 1>afternoon call. And here he is Bill Maloney, Good afternoon, Charlie.

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<v Speaker 1>Manus averages are quiet today, with the Dow currently down

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<v Speaker 1>thirteen and a half points, sysipes down one and then

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<v Speaker 1>NAZAC is higher by nine. The small cap six hundred

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<v Speaker 1>point five four percent. Five out of ten sub sectors

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<v Speaker 1>are high, led by gains in healthcare, technology and consumer staples.

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<v Speaker 1>Energy and materials led to the downside down Transports fall

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<v Speaker 1>thirty and as a biotechs gain four. Utilities are a

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<v Speaker 1>little changed and the VIX is up by three percent.

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<v Speaker 1>Down Leaders to the downside included American Express, DuPont and Caterpillar.

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<v Speaker 1>Leaders included Fiser, Disney and Goldman Sachs. Noegia cruise lines

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<v Speaker 1>fell as much as ten point eight percent after its results,

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<v Speaker 1>while Endyo International gain as much as twenty eight percent

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<v Speaker 1>after its earnings, and Walt Disney reports after the belt

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<v Speaker 1>tonight Esmates are for at dollar sixty one on revenues

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<v Speaker 1>of fourteen point one six billion, Live on the first

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<v Speaker 1>year Baking News. Ask on Bill Maloney chili alright, thank

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<v Speaker 1>you very much, and to hear live breaking news over

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<v Speaker 1>Penneth dot com. I'm Charlie Pellett and that's a Bloomberg

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<v Speaker 1>business flash. You're listening to taking Stock with Kathleen and

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<v Speaker 1>Pim Fox on Bloomberg Radio. According to Texas public health officials,

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<v Speaker 1>the death of a new born in the Houston area

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<v Speaker 1>has been linked to the Zeka virus, and today Governor

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<v Speaker 1>Rick Scott of Florida said that the federal government must

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<v Speaker 1>stop playing politics and Congress needs to immediately come back

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<v Speaker 1>to session to resolve the dispute over funding for ZEKA.

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<v Speaker 1>Here to tell us more is Brian Ry. He is

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<v Speaker 1>senior healthcare policy analyst for Bloomberg Intelligence Government Team. He

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<v Speaker 1>joins us from Washington, d C, home to Bloomberg FM

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<v Speaker 1>and one oh five point seven h D two. Brian,

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<v Speaker 1>this new bit of news is not really new, It's

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<v Speaker 1>only new in its specifics. Why is it taking this

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<v Speaker 1>kind of news item to get people's attention about the

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<v Speaker 1>seriousness of the Zeke virus. Well, Pam, first of all,

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<v Speaker 1>thanks for having me on. And it's a great question because,

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<v Speaker 1>as you sort of pointed out, a lot of things

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<v Speaker 1>are going on right now and none of them are

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<v Speaker 1>very good. Governor Scott dan in Florida also announced and

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<v Speaker 1>I think they've identified four more cases, bringing the total

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<v Speaker 1>up to twenty one. The CDC has issued the first ever,

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<v Speaker 1>as far as we can tell, first ever domestic travel

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<v Speaker 1>advisory for a neighborhood in Miami. And the Olympics are

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<v Speaker 1>in an area of the world that's also been ravaged

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<v Speaker 1>um by the virus, and you know, has the potential

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<v Speaker 1>to have some not so good news coming out of

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<v Speaker 1>the Olympics. UM. Now, the problem for Congress is twofold.

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<v Speaker 1>Number one, Republicans and Democrats have had a hard time

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<v Speaker 1>coming together on the right level of funding and legislation

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<v Speaker 1>to to help address this. And the second problem is,

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<v Speaker 1>even if they could come to an agreement, they're not

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<v Speaker 1>in session right now. They're out on their summer recess

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<v Speaker 1>until until Labor Day. Uh. And so it's one of

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<v Speaker 1>those things that we're going to continue to have this

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<v Speaker 1>slow drip of news news news, and oh, by the way,

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<v Speaker 1>we're now less than three months away from the election.

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<v Speaker 1>That sort of helps to harden those political stances even more.

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<v Speaker 1>What was the political atmosphere in June when Senate Democrats

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<v Speaker 1>blocked a compromise bill. You know, the the attitude at

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<v Speaker 1>first earlier in the year was actually okay, you know,

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<v Speaker 1>certainly President Obama had wanted more money one point nine billion.

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<v Speaker 1>They felt like they had had a compromise between Senate

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<v Speaker 1>Democrats and Republicans at one point one billion. The Conference

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<v Speaker 1>Committee had worked that out. Uh. Senate Democrats, as you

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<v Speaker 1>pointed out, blocked a legislation over concerns about some some

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<v Speaker 1>provisions in the bill didn't specify some additional funding for

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<v Speaker 1>planned parenthood. For example, that's a lightning rod for both sides,

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<v Speaker 1>and they sort of drew a line in the sand

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<v Speaker 1>there and they adjourned for their summer recess without having

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<v Speaker 1>come to an agreement. Now, again, we don't know what

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<v Speaker 1>sort of mood they'll be in. You know that the

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<v Speaker 1>expression is absence makes the heart grow funder. I'm not

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<v Speaker 1>sure that's the case for Republicans and Democrats coming off

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<v Speaker 1>their their recess. But if this sort of thing it

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<v Speaker 1>changed to happen, my guess is we'll see them come

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<v Speaker 1>to some sort of an agreement uh in September. But again,

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<v Speaker 1>with an election three months away, neither side feels really

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<v Speaker 1>compelled to be the one that gives in. First we

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<v Speaker 1>mentioned Texas, also Florida. I want you to tell us

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<v Speaker 1>about what's going on in Puerto Rico. You know, it's

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<v Speaker 1>it's really bad uh there. And you know, a big

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<v Speaker 1>chunk of the funding that was certainly requested by President

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<v Speaker 1>Obama was to increase funding both for medicaid and additional

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<v Speaker 1>grants to help treat to help combat the population there.

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<v Speaker 1>And certainly, not only is it a problem for the

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<v Speaker 1>people within Puerto Rico, but because it's US territory, you know,

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<v Speaker 1>there's easy transit between the islands, um and and the

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<v Speaker 1>rest of the continent of the United States. And so

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<v Speaker 1>you've seen concerns. Certainly in Florida bipartisan both senators Republican

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<v Speaker 1>Marco Rubio Democrat Bill Nelson certainly want them to come

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<v Speaker 1>back and address this. And I think Rubio would even

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<v Speaker 1>be fine with the president's higher request. But certainly both

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<v Speaker 1>parties there want to get this fixed. You know. Unfortunately

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<v Speaker 1>for them so far, the rest of the country isn't

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<v Speaker 1>impacted by that. And you know the expression all politics

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<v Speaker 1>are local and right now it's it's something that's in

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<v Speaker 1>the news but hasn't really touched home for I guess

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<v Speaker 1>a sufficient number of Americans, well, Brian Uh to reconvene Congress.

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<v Speaker 1>Forty seven Senate Democrats have already asked the Senate Majority Leader,

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<v Speaker 1>Mitch McConnell, as well as Paul Ryan House Leader, to

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<v Speaker 1>go ahead and reconvene Congress immediately. You know they could

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<v Speaker 1>I think, um, you know, Senator McConnell's answer would probably well,

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<v Speaker 1>why should we reconvene for you so you can say

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<v Speaker 1>no again. You know, you had a bill we had

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<v Speaker 1>to compromise, uh there on the desk that you rejected

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<v Speaker 1>in June, and I think they feel comfortable that that's

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<v Speaker 1>the bill they want to move forward. Now. Again, events

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<v Speaker 1>can change very quickly, but I don't think that they're

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<v Speaker 1>necessarily going to heed the call of Democrats and Secretary

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<v Speaker 1>Hillary Clinton on the campaign trail to come back and

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<v Speaker 1>be seen as doing their bidding to just have this

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<v Speaker 1>become more and more of an argument over, for example,

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<v Speaker 1>planned parenthood instead of trying to address address the issue now. Again,

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<v Speaker 1>Republicans may decide that that's not something they want to

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<v Speaker 1>draw a line in the sand on either, But I

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<v Speaker 1>don't think that's the cases we sit here on August nine.

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<v Speaker 1>As we sit here, there are companies such as in Novio, Snofi,

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<v Speaker 1>and Glaxo smith Klein. They are working to develop a

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<v Speaker 1>Zeka vaccine. Did they rely on this kind of government

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<v Speaker 1>funding as well? Well, it certainly helps. And you know

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<v Speaker 1>two of the ones you mentioned U you know, Santa

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<v Speaker 1>Fee and Glaxo smith Klein are in fact working in

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<v Speaker 1>sort of these private public partnership. Santa Fe is in

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<v Speaker 1>the deal with the U. S. Army to try and

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<v Speaker 1>work on a vaccine. Glad So Smith Klient is working

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<v Speaker 1>separately with the n i H, and so these grant

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<v Speaker 1>funds you know, are coming in not only for the

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<v Speaker 1>vaccines but also for diagnostic agents and tests to help

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<v Speaker 1>people to at least identify what this is, because this

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<v Speaker 1>is one of the tough things about ZEKA is it's

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<v Speaker 1>not readily apparent that that you might have. The symptoms

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<v Speaker 1>are tough, tough to deal with, tough to identify, and

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<v Speaker 1>and so yes, absolutely this is something where they would

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<v Speaker 1>rely on some government funding to help move that process along.

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<v Speaker 1>Thank you very much for enlightening us. Brian Ry is

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<v Speaker 1>our senior healthcare policy analyst for Bloomberg Intelligence, the government

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<v Speaker 1>team of course, Bloomberg Intelligence providing real and unique research

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<v Speaker 1>and context on a variety of industries, all markets, and

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<v Speaker 1>government factors that affect business. This is Bloomberg. Bloomberg taking

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