Speaker 1: This is Bloomberg Business Week. I'm Carol Masser and I'm
Speaker 1: Jason Kelly. We're right here every day bringing you the
Speaker 1: latest news from the world's of business and finance, class, technology, politics, economics,
Speaker 1: all harnessing the power of Business Week reporters and editors,
Speaker 1: and of course Carol that's part of a team of
Speaker 1: twenty seven hundred journalists and analysts and more than a
Speaker 1: hundred and twenty countries and Jason. You can download Bloomberg
Speaker 1: Business Week on iTunes, SoundCloud, o Bloomberg dot com. You
Speaker 1: can also listen to our radio show at two pm
Speaker 1: Eastern on Bloomberg Radio every weekday, or watch us on
Speaker 1: YouTube by searching Bloomberg Global News. Let's set the Business
Speaker 1: week agenda because the markets remain front and center, we
Speaker 1: know for our audience and also as a gauge of
Speaker 1: where we are both economically and what the reaction is
Speaker 1: to all of this that's going on around us. To
Speaker 1: help us do that, Gina Martin Adams is of course
Speaker 1: Bloomberg Intelligence chief equity strategist, and Dave Wilson Bloomberg's Stocks editor.
Speaker 1: They both joined us from New Jersey. Dave, I want
Speaker 1: to start with you just give us the sense as
Speaker 1: you look at the contours of this trade, what's driving
Speaker 1: us up here? Well, it really looks Jason like a
Speaker 1: lot of the shares that have been beaten down over
Speaker 1: the past few months are kind of leading the way
Speaker 1: up here. I mean, you've got a perfect example in Coty.
Speaker 1: I mean, given that they've made a deal with kk
Speaker 1: R for their professional beauty business. We're talking about Claire
Speaker 1: All and Wella. Those brands valued in the transaction of
Speaker 1: four point three billion dollars, and Coty shares are up
Speaker 1: almost seventeen percent, its biggest game in the SMP five hundred,
Speaker 1: and then you see the gap after that, I mean,
Speaker 1: and talking about a stock that's been beaten up lately,
Speaker 1: you know, JP Morgan getting more positive on the company
Speaker 1: given the extent of the stocks decline, and it's up
Speaker 1: more than twelve percent. You know, you go down the list,
Speaker 1: you see uh some of the retailers, uh companies, you know,
Speaker 1: real estate investment trusts actually owned the shopping centers, right
Speaker 1: you know. You you see uh that the cruise lines,
Speaker 1: you know, the the airlines to some extent, the hotels.
Speaker 1: I mean, those are the kind of stocks that are
Speaker 1: leading the way, you know, as much as anything. I mean,
Speaker 1: tech shares aren't even keeping up with the s the moment. Yeah,
Speaker 1: come on in on this. It's an interesting I think
Speaker 1: we all thought, you know that because of some of
Speaker 1: the turmoil that we saw around the nation over the weekend.
Speaker 1: Also China and US tensions seem to be taking another
Speaker 1: step forward, China kind of kicking back here or pushing back.
Speaker 1: I think we thought that there'd be a little bit
Speaker 1: more nervousness in the markets. How do you see it today? Well,
Speaker 1: what I see is a market that continues to broaden um.
Speaker 1: It's a continuation of leadership into as Dave mentioned, the
Speaker 1: beaten down names that's really been going on since late March,
Speaker 1: and it's just continued to gather steam throughout the month
Speaker 1: of May. We saw this gather seemed significantly, but a
Speaker 1: couple of really critical technical threshold where LEAs reached last
Speaker 1: week that are just too tough for investors to continue
Speaker 1: to ignore. I mean, I think the first two months
Speaker 1: of this rally were was a lot about you know,
Speaker 1: kind of taking a leap of faith, and there were
Speaker 1: still a lot of investors sitting on the sidelines, sort
Speaker 1: of poo pooing the rally as a bear market rally
Speaker 1: that will eventually fade and turnover. But last week we
Speaker 1: crossed over the tunit day moving average for the first time.
Speaker 1: We got to the point where nine of stocks in
Speaker 1: the index were trading above their fifty day moving average.
Speaker 1: These types of numbers just don't happen in bear market bounces.
Speaker 1: They usually signify the beginnings of a new uptrend and
Speaker 1: a recovery rally that tends to endure. So I think
Speaker 1: what you're seeing um, both last week and a continuation
Speaker 1: of today, is really investors finally capitulating to the trend,
Speaker 1: rotating into where they see you have the greatest opportunity
Speaker 1: for continued advance, which many would say are the cyclical laggards,
Speaker 1: where you probably still have a little bit of room
Speaker 1: for catchup um and generally starting to put a little
Speaker 1: bit of money to work in equities despite the fact
Speaker 1: that they're kicking and screaming their way in well, it's interesting,
Speaker 1: you know, also kicking and screaming their way in his
Speaker 1: Golden Sacks, which rolled back it's pessimistic outlook for stocks, right,
Speaker 1: David custom Um was predicting the SNP would slum to
Speaker 1: the level, so that was below the Friday clothes and
Speaker 1: now they're saying, okay, yeah, we're gonna you know, go
Speaker 1: all in and like everybody else. Yeah, these kind of
Speaker 1: things always worry me. When everybody starts to capitulate, then
Speaker 1: you want to start to get a little bit more cautious,
Speaker 1: and that is something that we're starting to do. Actually,
Speaker 1: we put a report on the terminal this morning talking
Speaker 1: about you know, while we're very very um, sort of
Speaker 1: suzed by the idea that finally we get to claim
Speaker 1: that this is a recovery rally with the technicals that
Speaker 1: have formed, we also typically find that market advances slow
Speaker 1: following those technical technical and you know measures reached. So
Speaker 1: our view is that we head into a choppier market
Speaker 1: over the summer we start to really question our economic outlook.
Speaker 1: We've seen a lot of rerating on policy and optimism
Speaker 1: that you know, policy will sort of flew been and
Speaker 1: provide enough cover for us to get through this. Now
Speaker 1: I think we get into more of a show me
Speaker 1: market and we start to see, you know, really focus
Speaker 1: on that economic and earning data a little bit more
Speaker 1: for signs of recovery emerging. Yeah, those next earning its
Speaker 1: reports are going to be fascinating to look at all. Right,
Speaker 1: Gina Martin Adams, thank you so much. Well, as we know,
Speaker 1: we talked a little bit about so much going on,
Speaker 1: certainly on this Monday, but we cannot forget that we're
Speaker 1: still in a global pandemic, global deaths exceeding three seventy
Speaker 1: two thousand, lots going on. So let's get an update.
Speaker 1: Let's head back to one of our you know, top
Speaker 1: voices when it comes to what's going on in the virus.
Speaker 1: That's Dr Rod Hawkman. He's president and CEO of Providence Health.
Speaker 1: Of course we've talked to them before, and him specifically
Speaker 1: the massive health system that's out there on the West coast.
Speaker 1: Dr Hawkman joining us on the phone once again from Seattle, Washington. UM.
Speaker 1: Dr Hawkman, nice to have you back with us. UM.
Speaker 1: Tell us a little bit about what you're seeing at
Speaker 1: this point and what it tells you about kind of
Speaker 1: where we are as a kind true when it comes
Speaker 1: to the virus, getting control of the virus, and maybe
Speaker 1: what it helps tell us about what the next few
Speaker 1: months look like. Sure, I think as all positions and
Speaker 1: all people in healthcare, besides the tragic events of the
Speaker 1: weekend and all of that. We're holding our breath watching
Speaker 1: all of these people in close quarters, thinking about what's
Speaker 1: what's going to happen two weeks from now. And you know,
Speaker 1: because we look at it from a clinical standpoint as
Speaker 1: well as from an emotional standpoint, we understand. But wow,
Speaker 1: we just we just see with a lot of the
Speaker 1: opening up of the country, but then particularly with all
Speaker 1: the demonstrations across cross the country, what's going to happen
Speaker 1: in terms of the spread of this virus. So that's
Speaker 1: I think collectively we're holding our breath on that one.
Speaker 1: We were we were comfortable with what were things going.
Speaker 1: I think now it's kind of a wait and watch
Speaker 1: where the next few weeks come. And so Dr Hawkman,
Speaker 1: when you've joined us before, it's clear that you are
Speaker 1: in touch with state officials at the highest level, talking
Speaker 1: to CEOs and and others. I believe you were in
Speaker 1: consultation with the Business Roundtable and and other corporate groups
Speaker 1: help us understand what folks at that level are are
Speaker 1: talking about now, especially as we think about reopening in
Speaker 1: a very cautious way across the country. So I think
Speaker 1: there are two things. One is we're giving out a
Speaker 1: lot of advice on what's the best way to do it.
Speaker 1: And I have to say, from the business standpoint, a
Speaker 1: lot of the studios and companies are doing a great
Speaker 1: job thinking through how they get their workers back, what's
Speaker 1: the best thing to do. They're getting a lot of
Speaker 1: great medical input, so I was really pleased just to
Speaker 1: see the way they responded. And then the second is
Speaker 1: specifically with a lot of the pharmas studios talking about
Speaker 1: vaccine development. And the thing that I've been worrying about
Speaker 1: most is not as much about the vaccine development, but
Speaker 1: are we going to have the delivery mechanisms for those vaccines?
Speaker 1: Enough glass files, enough needles? And then it's that priority
Speaker 1: by which we start vaccinating three hundred plus million Americans?
Speaker 1: Who do we start with? How do we do that?
Speaker 1: Those are all the preparations that we need to do
Speaker 1: now for six months from now, and I was glad
Speaker 1: to see at least the business community and they I
Speaker 1: just talked in to the CEO of a major pharmaceutical
Speaker 1: company said look, we just spent the last three hours
Speaker 1: on that topic. So I was pleased to hear that
Speaker 1: do we need fitfull government involvement in order to do
Speaker 1: it um the way that it needs to be done,
Speaker 1: so that we are ready in six months perhaps when
Speaker 1: a vaccine is there. Yeah, I think the CEOs have
Speaker 1: gone beyond that and are just saying, Okay, how do
Speaker 1: we get this done? I think we need to have
Speaker 1: coordination between the farmer companies and then then each state
Speaker 1: is going to have to figure out how does it
Speaker 1: vaccinate its population. And one of the things that we
Speaker 1: have is that we do the influenza vaccine every year.
Speaker 1: Might that not be a good starting place to figure
Speaker 1: out how do we distribute the vaccine mean and everything else?
Speaker 1: So I said, what's happened? I think in this next
Speaker 1: phase people are just moving beyond And so Dr Huchman
Speaker 1: just staying with with vaccines for a moment. As you're
Speaker 1: talking to these CEOs and and other folks within the
Speaker 1: medical community, and I know you're talking to researchers and whatnot.
Speaker 1: What's the realistic timetable? I mean, is six months still
Speaker 1: realistic in terms of getting something that is, if not
Speaker 1: sort of mass available available to the extent that it
Speaker 1: really makes a dent and how we can live our lives. Right, So,
Speaker 1: I think there's two aspects of this. One is, you know,
Speaker 1: kind of the ethical one where a number of people
Speaker 1: have agreed to get actually infected with COVID if they've
Speaker 1: gotten on the vaccine, to accelerate the process to look
Speaker 1: at the efficacy because ultimately, if you have to wait
Speaker 1: for you know, the natural progression of the disease, it
Speaker 1: takes time. So a lot of people are working through that.
Speaker 1: If that happens, that's going to really accelebrate the development
Speaker 1: of understanding whether we have an effications of vaccine. So
Speaker 1: that's going to be a big, big step there. But
Speaker 1: it's really exciting amount of research that's being done and
Speaker 1: more thunlikely we'll have more than one vaccine. It's going
Speaker 1: to be several different ones that we're going to be
Speaker 1: looking at. If I can switch gears just for a segment,
Speaker 1: Dr Hawkman, I think all of us, you know, there
Speaker 1: was a story, several stories that have come out, and
Speaker 1: I know Bloomberg News is covered as well about you know,
Speaker 1: the amount of bailout money that went to different hospital
Speaker 1: systems and I think you folks got about half a
Speaker 1: billion dollars. Help us understand because you're one of the
Speaker 1: more you know, one of the largest systems in the
Speaker 1: country and one of the more I guess financially solvent
Speaker 1: hospital systems. Help us understand how that makes sense? So okay,
Speaker 1: I'm so glad to asked that question. I think I
Speaker 1: need to teach the New York Times about numerator and denominator.
Speaker 1: We have f we have fifty one hospitals, we have
Speaker 1: a hundred twenty thousand people, and we're in seven states.
Speaker 1: So obviously when you break that down hospital and household
Speaker 1: by clinic, it's actually a smaller amount that has happened
Speaker 1: in other places. Secondly, you know, we reminded them that
Speaker 1: they who were printed that we do about a billion
Speaker 1: and a half dollars of free care each year and
Speaker 1: community service. And then the third is on a on
Speaker 1: an ibadah and margin basis. We're a one to two
Speaker 1: percent margin operations. So I wish, you know, I wish
Speaker 1: I was a silicon powerhouse and all the words that
Speaker 1: they used, and uh, you know, I think most of
Speaker 1: them in healthcare saw how long they got the story.
Speaker 1: Uh they were just looking at the you know, the
Speaker 1: top nine one one was that were given out, you know,
Speaker 1: and then also weren't working well are the areas of
Speaker 1: the country that were most affected. Obviously we're in Los
Speaker 1: Angeles and Seattle that we're heavily affected by COVID nineteen.
Speaker 1: So I could go on and on, but it's it's
Speaker 1: unfortunate how a lot of the stories get editorialized and
Speaker 1: aren't based on the side, right, Dr Hawkman, we really
Speaker 1: appreciate your input at as always, Dr Hawkman from Providence Health.
Speaker 1: You are listening to Bloomberg Business Week, and I have
Speaker 1: to say, like many people, I was reading everything I
Speaker 1: could get my hands on over the weekend and was
Speaker 1: so happy to come across the story by Peter Coy
Speaker 1: because we look to him to just put things in perspective,
Speaker 1: and his peace it's online and on the Bloomberg about Minneapolis,
Speaker 1: is really a terrific read. He joins us on the
Speaker 1: phone from New Jersey, as does Joel Webber, the editor
Speaker 1: Bloomberg Business Week. He's on our remote line from Brooklyn.
Speaker 1: So Joel, this was one of these I don't know,
Speaker 1: it's hard to sort of say it's a gift at
Speaker 1: a time when there's so much turmoil going on, but
Speaker 1: it really was some important perspective help us understand what
Speaker 1: Peter set out to do before we get to him. Uh. Well,
Speaker 1: I mean, first of all, like the country is just
Speaker 1: reeling right now. And um, that was even before the
Speaker 1: weekend started. And Um, I was talking with Peter a
Speaker 1: little bit and he said, you know, I know Jacob Frey.
Speaker 1: Uh and and that immediately just caught my attention because um,
Speaker 1: you know, I just always respect sort of wherever Peter's
Speaker 1: mind goes. UM. But the really the angle that he
Speaker 1: hit on here was UM one that kind of I
Speaker 1: think is, you know, it's very prescient and that it
Speaker 1: takes into account everything that Minneapolis has really gone through,
Speaker 1: not only on phrase watch, but just historically. And I
Speaker 1: think that that infused um in the article and it
Speaker 1: also helps us make sense of what happened in Minneapolis,
Speaker 1: which then led to obviously a much bigger national moment
Speaker 1: that we're all watching very closely now. Um, Peter, what
Speaker 1: was for you when you kind of look at it
Speaker 1: Frey and Minneapolis? What are the what are the elements
Speaker 1: that have jumped out to you? Oh, Minneapolis is well
Speaker 1: known as really a mecca of corporate philanthropy. You know,
Speaker 1: they have a really dense concentration of fortune companies and uh,
Speaker 1: you know, I can go down the list, but three
Speaker 1: m Best by Target on Non and John t Rockefeller
Speaker 1: back in the nineteen seventies. The third that is visited
Speaker 1: Minneapolis partly just to see, you know, how could this
Speaker 1: one city be so famous for its corporate giving and
Speaker 1: yet at the same time they have a very bad
Speaker 1: problem of racial inequality in housing and incomes and so on.
Speaker 1: So I just think it's it's tragic and it deserves
Speaker 1: more study. Partly because the people who you know, subscribe
Speaker 1: to Bloomberg Re, Bloomberg Business and Blosom Blomberg Radio are
Speaker 1: the kind of people who work for some of these
Speaker 1: companies and think of themselves as doing the right thing,
Speaker 1: and yet somehow the right outcomes are not happening well.
Speaker 1: And I'm going to say, you know, we have a
Speaker 1: guest coming up after this, John O'Brien at Operation Hope,
Speaker 1: and I want to talk to about responsibility and all
Speaker 1: of this, because, as you say, Peter, you know the
Speaker 1: Twin Cities. I mean, it's like a who's who lists,
Speaker 1: Who's whose list of of corporate America, Target, Cargill, Metronic,
Speaker 1: three m Eco, Lapse, General Mills, Best by US Bank,
Speaker 1: and you know, We've had conversations with so many different
Speaker 1: executives at different firms about you know, diversity, inclusion, equality,
Speaker 1: you know, putting you know, programs in place at companies,
Speaker 1: and yet here we are. Ye, yep, that's the tragedies.
Speaker 1: So I know Jacob bry the mayor, he was a
Speaker 1: runner UM. He actually represented the U S and the
Speaker 1: Pan American Games in the marathon, and then at a
Speaker 1: young age he became the mayor. Is very progressive kind
Speaker 1: of guy. And here he was doing sort of the
Speaker 1: right things to put Minneapolis on the track to reduce
Speaker 1: some of this racial inequality. This came along and it's
Speaker 1: just devastating the city and it's gonna be hard to
Speaker 1: rebuild from this, you know, Peter. We wrote a feature UM,
Speaker 1: which you say in your story last year sort of
Speaker 1: about UM, this movement that's been happening across the country
Speaker 1: UM and Minneapolis became one of the most interesting places
Speaker 1: to watch, which is about Yembi and Nimbi and and
Speaker 1: sort of the end of zoning single family housing. UM.
Speaker 1: What is the role between that and sort of what's
Speaker 1: happening What's happened in Minneapolis over time, So a lot
Speaker 1: of cities around the country had basically segregation Blacks are
Speaker 1: not allowed to live in certain neighborhoods, and that went away,
Speaker 1: but it was kind of replaced by zoning laws, which
Speaker 1: were not on their face segregationists, but had some of
Speaker 1: the same effects. U the residential land in Minneapolis has
Speaker 1: has been zoned for single families. A lot of blacks
Speaker 1: could not afford to buy houses, and they were stuck
Speaker 1: in apartments and not able to build wealth and of
Speaker 1: course segregated. Um So, Mineapolis became the first big city
Speaker 1: the United States in to repeal single family housing, which
Speaker 1: allows partment buildings to be built all around the city.
Speaker 1: This is quite a dramatic event because you can imagine
Speaker 1: how many homeowners you might have been expected to resist this,
Speaker 1: and yet it passed the council and proved by the mayor.
Speaker 1: And it's uh, that's what I'm talking about when to
Speaker 1: talk about the city trying to move towards, you know,
Speaker 1: fixing its original sins. And that's why it's so tragic
Speaker 1: that this happened anyway, when they seem to be on
Speaker 1: a course towards better at times. And I know it, Peter,
Speaker 1: it's impossible to predict anything. These days, and certainly it's
Speaker 1: it's too soon to make a lot of predictions about
Speaker 1: what happens tonight, very much less what happens in the
Speaker 1: near to mid term. But you know, what does Minneapolis
Speaker 1: do at this point? And knowing what you do know
Speaker 1: about the leadership there, what do you think the playbook is?
Speaker 1: I think we have to go back to the nineteen
Speaker 1: sixties to see how it played out back then, and
Speaker 1: this is similar in some ways. It's it's a very
Speaker 1: slow process of healing. I'm I'm sorry to say that
Speaker 1: it doesn't always work. I mean, there are cities like
Speaker 1: Newark and Detroit that we're really lastingly damaged by the
Speaker 1: riots they had. It was white flight, there was business flight,
Speaker 1: and there to this day depopulated and poorer than they
Speaker 1: were before those riots. Are just praying that doesn't happen
Speaker 1: this time. All right, Well, we're gonna leave it there.
Speaker 1: We thank you both so much. Peter Coy joining us
Speaker 1: Economic Cetera for Bloomberg Business Week, joining us on the
Speaker 1: phone from New Jersey, and Joel Webber, the editor of
Speaker 1: Bloomberg Business Week, joining us from Brooklyn and Carol. It
Speaker 1: really is one of those stories that reminds us I
Speaker 1: think something that we're gonna be talking about throughout the
Speaker 1: course of this show and and I'm guessing throughout the
Speaker 1: course of this week and maybe longer, which is everything
Speaker 1: quoting Joe Webber is a business story in many ways,
Speaker 1: and the economics of a place and the role of corporations.
Speaker 1: And as you said, we're going to talk about this
Speaker 1: in just a few minutes with John Hope Bryant. It
Speaker 1: has become even more important. And one of the things
Speaker 1: that that I've been thinking a lot about, and I'm
Speaker 1: guessing you have too, is this notion of what do
Speaker 1: we expect companies to do? And what do we expect
Speaker 1: them to say? And maybe in reverse order we know
Speaker 1: that they're going to say something, what do we expect
Speaker 1: them to do? What is their responsibility at a time
Speaker 1: like this? And I feel like now more than ever,
Speaker 1: they have to act well, you know, this is no nothing.
Speaker 1: You know, it's not dissimilar to what we've been talking
Speaker 1: about with the virus about you know, these inequalities. It's
Speaker 1: not like they all of a sudden just happened because
Speaker 1: of the virus. The same thing, you know, with what
Speaker 1: we've seen play out in Minneapolis and really you know,
Speaker 1: elsewhere around the country. UM, not everyone is given the
Speaker 1: same equal start or you know, or access to opportunities.
Speaker 1: And we've talked so much about kind of you know,
Speaker 1: where you grow up. UM often means what kind of
Speaker 1: perhaps public education you get, and that means what kind
Speaker 1: of higher education you get, and what kind of job
Speaker 1: you get it and what kind of health care you get.
Speaker 1: I mean, it's you know, it's all connected, and you know,
Speaker 1: I think it's really remarkable what the Minneapolis mayor tried
Speaker 1: to do in terms of single family zoning. I mean,
Speaker 1: this is how you start to change things. And I agree, Jason.
Speaker 1: I feel like we've been having these conversations. I know
Speaker 1: I certainly have in my career for years. And so
Speaker 1: enough talking and let's actually start to see some action.
Speaker 1: You're listening to Bloomberg Business Week with Carol Masser and
Speaker 1: Jason Kelly on Bloomberg Radio Back with Us as John
Speaker 1: Hope Bryant. He's the founder, chairman and CEO of the
Speaker 1: Atlanta based Operation Hope. John is also chairman in chief
Speaker 1: executive officer Bryant Group Ventures and co founder of Global Dignity.
Speaker 1: He joins us on the phone from Atlanta. John, It's
Speaker 1: nice to have you back with us, but I do
Speaker 1: wish it was under different circumstances. I do feel like,
Speaker 1: you know, like the virus, there are things that persist
Speaker 1: in our society and equalities and justices, lack of accountability.
Speaker 1: You know that we're there, but we're seeing them once
Speaker 1: again front and center. It's it's horrible. I do wonder
Speaker 1: you know, what happens as a result of what's happening
Speaker 1: in Minneapolis right now? What changes? Uh, you know, consciousness.
Speaker 1: It's like a rubber band that has expanded, you know,
Speaker 1: it never returns to its original side. First of all,
Speaker 1: thank you and your colleagues for all that you do.
Speaker 1: Thanks for being a light on the heel in a
Speaker 1: moment of darkness. The media is playing an outsize role
Speaker 1: in our consciousness these days because some of our national
Speaker 1: leaders are not stepping up in a way that it's holistic,
Speaker 1: that's bridge building, that's bringing us together, that's providing a
Speaker 1: light and a way forward. So thank you guys for
Speaker 1: doing that. Thank you. You You know, you know, a rubber
Speaker 1: band has expanded doesn't return as it was original size.
Speaker 1: It's forever extended. And so when things like this happened.
Speaker 1: You star of having black people saying I feel discriminated
Speaker 1: against and white people saying I have no idea what
Speaker 1: you're talking about. As Will Smith said, the racism did
Speaker 1: not get discovered, it got filmed. And now when something
Speaker 1: like this happens, it just becomes undeniable. It's like that
Speaker 1: people of good will, which are most people, just because
Speaker 1: that's just that's just ridiculous, Like that's that's disgusting that
Speaker 1: we can't. We can't, that's not that, that's not our nation,
Speaker 1: that's not you know what if that's my child and
Speaker 1: we started having a week conversation and not a MEU conversation,
Speaker 1: and then you can begin to do something about it.
Speaker 1: I over the weekend, I've had a problem with the looting,
Speaker 1: and operation was founded in the after the rhne Cking
Speaker 1: rise in so this strikes me very close to home.
Speaker 1: Um were the largest what we do in the country
Speaker 1: because we responded differently to the riot after it was over,
Speaker 1: it decided to respond, not react. But this rioting and
Speaker 1: the looting of that continues. We will destroy the moral
Speaker 1: authority that George Floyd's gave us to honor his can
Speaker 1: see this weekend though, I was, you know, talking to
Speaker 1: some young people, and they said, John, you get to
Speaker 1: be at the table. You know, you you get to
Speaker 1: talk to people, You get to do media, you get
Speaker 1: to go to the White House, you get to go
Speaker 1: go and you know, CEO's offices and source. They listen
Speaker 1: to you. We've been listen, We've been talking. My grandfather
Speaker 1: was talking, my father has been talking. I'm talking. They
Speaker 1: don't listen to us. No one listens to us until
Speaker 1: we tear some stuff up. So he said, look, we
Speaker 1: don't want to tear stuff up. It's primarily not with
Speaker 1: us tearing stuff up. We've been infiltrated, so and so forth.
Speaker 1: But what stuff gets torn up, people are actually listening
Speaker 1: to us. So now we can hand the the time
Speaker 1: back to you to go talk for us in these
Speaker 1: board rooms and and hopefully cut a deal to get
Speaker 1: me an internship, to stop the poverty, stop increase the peace,
Speaker 1: and Greece some legislation to get us some fairness. And
Speaker 1: I think that goes back to that Dr. King quote.
Speaker 1: He said that the violence is the language of the unseen,
Speaker 1: and they unheard. Dr King wasn't endorsing violence, he was
Speaker 1: acknowledging the pain Well and Johnam, I'm glad you brought
Speaker 1: up Dr King because you're there in Atlanta, and I
Speaker 1: think a lot of us saw your mayor, and I'm
Speaker 1: from Atlanta, as you know, and so I was paying
Speaker 1: very close attention, even closer attention to it, the legacy
Speaker 1: of Dr King and the legacy of so many others,
Speaker 1: whether it's former mayor and a young whether it's obviously
Speaker 1: Congressman Lewis and so many others like you who are
Speaker 1: down there in Atlanta, which has again such a rich
Speaker 1: legacy here. What have you learned and what are we
Speaker 1: learning there that maybe we can taken in a broader
Speaker 1: sense because Mayor Bottoms, you know, spoke so passionately about
Speaker 1: the that legacy, and I wonder how that translates, especially
Speaker 1: to a business audience. Yeah, so that's a very good question.
Speaker 1: I think that this goes back, you know, by the
Speaker 1: way things are calming down here where things are popping
Speaker 1: off and heating up other places. We're starting to transition
Speaker 1: a bit here. And I think it's part in part
Speaker 1: because the mayor, who's a black woman, said stop the looting,
Speaker 1: like you're not honoring our legacy. This is ridiculous. She
Speaker 1: she behaved like a parent, and a lot of our
Speaker 1: national leaders are not behaving like good parents. She behaved
Speaker 1: like a good parent, and you had you had that.
Speaker 1: Then you had corporate leaders step up, yes, but you
Speaker 1: had moral leaders like Andrew Young ambasslor Andrew Young my
Speaker 1: mentor say you're breaking my heart. I'm crying now. We
Speaker 1: didn't give our lives for this. Then you had t
Speaker 1: I and Killer Mike from the hip hop generation saying
Speaker 1: hey guys, hey, hey hey, we owned property over here.
Speaker 1: Like you know, this is not the way, This is
Speaker 1: not the way right, so you so it becomes culturally
Speaker 1: unum un sexy, culturally unacceptable for for for those who
Speaker 1: want to deal in this world we lived in after
Speaker 1: this is over, to continue with this. So we we
Speaker 1: acknowledge the pain, We acknowledge of that, but it manages
Speaker 1: a very To me, Atlanta is a moral center of
Speaker 1: America because of the civil rights legacy. This to me
Speaker 1: speaks to going back to the sixties. You know, Birmingham,
Speaker 1: Alabama and in Memphis could have been Atlanta, say actually,
Speaker 1: more population, better location for an international airport, but they
Speaker 1: fought over race, and we decided to fight over money,
Speaker 1: and that and and that became the conversation that this
Speaker 1: time is hey, you guys, right, you can't destroy the center, right,
Speaker 1: you can't destroy them all right, this is where this
Speaker 1: is where our friends work, is where your cousin works
Speaker 1: on Monday. You can't. You can't destroy it on Sunday.
Speaker 1: You gotta go to work on Monday. No, that's a
Speaker 1: really good point. John just unfortunately only got about forty
Speaker 1: seconds left here. I mean Atlanta, Minneapolis, you know, the
Speaker 1: Twin Cities. These are all cities that are, you know,
Speaker 1: home to a lot of well known corporations. What's the
Speaker 1: responsibility of CEOs and companies in all of this? A
Speaker 1: lot of them have diversity programs. They talk a lot,
Speaker 1: but what do we need to see in terms of action?
Speaker 1: And my apologies only got about thirty seconds. Reimagine your budget.
Speaker 1: Look at your annual budget. If your budget would be
Speaker 1: attached to it realized, we imagine a budget. Where are
Speaker 1: your interns going, where your apprenticeships going, where's your advertising
Speaker 1: dollars going? Where you know where your subcontracts going? And
Speaker 1: see if you canna empower, minorise and and underserved in
Speaker 1: women with those opportunities, because that's going to create piece.
Speaker 1: That's what you saw. The bullet is a job. This
Speaker 1: is about poverty. This is about poverty. Alright, Well, we
Speaker 1: really appreciate your time. We wish we had more. We're
Speaker 1: gonna have you back really soon. What a treat John Hope, Brian,
Speaker 1: as Carol said, we wish it were under different circumstances,
Speaker 1: but there are a few voices who are as clear
Speaker 1: as yours. We really appreciate it. Founder and CEO of
Speaker 1: Operation Hope joining us on the phone from my hometown Atlanta. Uh.
Speaker 1: And it does have a very rich legacy protests though
Speaker 1: they are nothing new. UH. In China and specifically in
Speaker 1: Hong Kong. We've been talking about it for months and months.
Speaker 1: They have restarted with a vengeance and it's all because
Speaker 1: of a continuing conflict between Beijing and Hong Kong. Andy
Speaker 1: Brown has been following that incredibly closely. Editorial director of
Speaker 1: course for Bloomberg New Economy. He lived in that part
Speaker 1: of the world for many, many years, and he's been
Speaker 1: following it for us and sharing his conversations with us,
Speaker 1: and we love having him back. He's on the phone
Speaker 1: from New Hampshire. So Andy, we've all been sort of
Speaker 1: domestically focused. I think rightly so over the past seventy
Speaker 1: two hours. But you know, meanwhile, this issue with China
Speaker 1: and with Hong Kong and involving the relationship between the
Speaker 1: United States and China has continued to escalate. What's the
Speaker 1: most important thing we need to know here, Well, there
Speaker 1: is actually a direct connection between protests in the United
Speaker 1: States and UH and protests in Hong Kong. UM. You know,
Speaker 1: the Chinese government of course, UM gloats at UH whenever
Speaker 1: the United States gets into trouble and is able to
Speaker 1: UM tell a domestic audience that look, our system is
Speaker 1: is superior, America is in is in decline. UM. Lots
Speaker 1: of talk about you know, US hypocrisy, criticizing the response
Speaker 1: to pro democracy demonstrations in Hong Kong and then noting
Speaker 1: the behavior of some of the police against protesters and
Speaker 1: the media UM here in the United States. But UM,
Speaker 1: the immediate connection with with Hong Kong is that you know,
Speaker 1: every June fourth, UM many many protests of thousands of
Speaker 1: protesters in Hong Kong take to the streets UM to
Speaker 1: commemorate UM the the the anniversary of the crushing of
Speaker 1: the pro democracy protests in Beijing's Gentlemen Square on June
Speaker 1: the fourth in uh In nineteen eighty nine. And you know,
Speaker 1: this is the first real test of this national security
Speaker 1: law which China's parliament ran through over the heads of
Speaker 1: the Hong Kong Legislature and the Hong Kong Police. Of
Speaker 1: the band that that protest, a lot of people say, well,
Speaker 1: you know this, uh, this national security law won't have
Speaker 1: any any impact. It will just sort of be pop
Speaker 1: to one side, never get used. And already you're you're
Speaker 1: you're seeing, um, you're seeing the effect in terms of
Speaker 1: a political tightening uh in Hong Kong. Of course, the
Speaker 1: police say this is a a COVID nineteen restriction, um.
Speaker 1: But very clearly this was the pretext to to prevent
Speaker 1: commemoration this year. What do you make of the continued andy,
Speaker 1: you know, escalation between the two as you said, you
Speaker 1: know China, you know, kind of pointing out to President
Speaker 1: Trump's own domestic woes because of these protests and talking
Speaker 1: about double standards, you know, between what's going on here
Speaker 1: and versus Hong Kong. At the same time, we have China,
Speaker 1: you know, um, halting some US farm imports, so that
Speaker 1: threatens that phase one of the trade deal. So what
Speaker 1: what how do we put that all in context? Kind
Speaker 1: of those together. Yeah, I mean it was interesting when
Speaker 1: Donald Trump on on Friday when he announced the the
Speaker 1: the official response US response to the passage of this
Speaker 1: national security law, and he promised a, you know, a
Speaker 1: very tough response, and then we were all wondering what
Speaker 1: that might be. And uh, in fact, um, it was
Speaker 1: a very watery, vague sort of statement that was sort
Speaker 1: of long on anguish and outrage and short on specifics
Speaker 1: um and and very importantly, um, he did not say
Speaker 1: that the US would abandon, um, the Phase one trade deal.
Speaker 1: And that's really critical. I mean, we we've talked about
Speaker 1: this before as being one of the few slender threads
Speaker 1: that now hold the relationship between the US and and
Speaker 1: and China together, so much so that you know, today
Speaker 1: in Hong Kong, yesterday in Hong Kong, the markets took
Speaker 1: um pronouncements on Hong Kong as a as a as
Speaker 1: a reason to buy. And you know, we saw we
Speaker 1: saw stocks going up. Yeah. I mean that's the amazing thing.
Speaker 1: And I'm glad you went there because amid all of this,
Speaker 1: I mean, we're looking at this here in the United States,
Speaker 1: but also in China. This notion that the investors say,
Speaker 1: all right, like we can deal with this, like we're
Speaker 1: just getting to keep buying folks. How do you square
Speaker 1: that as someone who looks at the newer Yeah, look,
Speaker 1: there's probably more sound and thunder in this than than
Speaker 1: than anything else. Because the truth of the matter is that,
Speaker 1: you know, the there's a lot of talk will Will
Speaker 1: will Trump uh you know renee or will we'll we'll
Speaker 1: we'll ump uh, you know, throw Hong Kong out of
Speaker 1: this sort of special trading relationship with with with the US.
Speaker 1: The truth is that, you know, Hong Kong, that the
Speaker 1: United States runs a very large trade sublus with with
Speaker 1: Hong Kong, and if it actually did away um with
Speaker 1: with Hong Kong special trading status, it would hut the
Speaker 1: US and US companies, you know, far more than it
Speaker 1: than it would Hong Kong. So the fact is that
Speaker 1: there isn't a whole lot that the US that Trump
Speaker 1: can do, um, you know, to hit back against China
Speaker 1: over Hong Kong without hurting its own interests. I mean,
Speaker 1: it's quite a it's quite a dilemma that the White
Speaker 1: House now faces. Yeah, it is interesting and uh as
Speaker 1: complicated as it is, there are some very clear economic
Speaker 1: consequences or or lack their up depending on where you're looking.
Speaker 1: All right, Andy Brown, thank you so much, editorial director
Speaker 1: for Bloomberg New Economy. We're so happy to catch up
Speaker 1: with him every week because it's a story. There are
Speaker 1: a lot of connections to occur well, and you've got
Speaker 1: to really understand trade and what the consequences are because
Speaker 1: in many ways, US companies are ultimately the ones that
Speaker 1: get hurt in this process, so you really have to
Speaker 1: understand the details and nuances the journal. Yeah, but you
Speaker 1: let me drive. No, no, no, honey, please, I'll do
Speaker 1: the right rival. Let me. I want to drive, Just drive, baby,
Speaker 1: the question trying. This is the drive to the globe.
Speaker 1: Give me thanks, we'll dry up to dawn. On Bloomberg Radio,
Speaker 1: it is down for the drive to the close. Emily
Speaker 1: Rowland is back with us CO Chief Investment Stredges at
Speaker 1: John Hancock Investments, based in Boston. That's exactly where we
Speaker 1: find her on this Monday. Emily, nice to have you
Speaker 1: back with Jason and myself. So tell us a little
Speaker 1: bit about kind of where we are in this market.
Speaker 1: We kicked off our broadcast a couple of hours ago,
Speaker 1: are Gina Martin Adams saying, you know, um, looking at
Speaker 1: the outcome, we're seeing broad based gain stocks, you know,
Speaker 1: a lot of them, a of their two day moving average,
Speaker 1: the S and P above it. Um, I don't know
Speaker 1: when you look at the market, what does it tell you? Well,
Speaker 1: thanks Carol for having me today and Jason, and certainly
Speaker 1: there's quite a bit of optimism that's being priced in
Speaker 1: by the markets today. And you know it seems that
Speaker 1: we wake up every morning and futures are higher once again,
Speaker 1: you know, despite some of the really negative headlines we're seeing.
Speaker 1: And it's certainly you know what the country is struggling
Speaker 1: right now. Um, you know that's a challenge. Um. We
Speaker 1: may see, um, some recent events, you know, start to
Speaker 1: dent some of the green shoots that we've we started
Speaker 1: to see from an economic perspective. But really at the
Speaker 1: end of the day, what it comes down to is
Speaker 1: markets are reacting to this incredible amount of fiscal and
Speaker 1: monetary stimulus that we've seen. You know, the said balance
Speaker 1: sheet is now sitting near seven trillion dollars, that's at
Speaker 1: increase in just three months. Europe's getting attacked together in
Speaker 1: terms of providing stimulus Japan. So we continue to see
Speaker 1: this incredible support that's really outweighing all these challenges and
Speaker 1: uncertainty that continues to face the market today. It is
Speaker 1: really remarkable. I mean, I have to say, I mean
Speaker 1: that it's just a measure of cognitive dissonance that we're
Speaker 1: all kind of learning to live with. Here, Emily, I
Speaker 1: also wonder, you know, looking at my Bloomberg terminal here
Speaker 1: and looking at here to date, and there it is
Speaker 1: standing out in the green the NASDAC. It's just it's
Speaker 1: just remarkable to to look at. And you know, we've
Speaker 1: been talking about this with Dave Wilson. Are stucks guy
Speaker 1: a lot? How do you sort of think about that?
Speaker 1: And it is this just a few names that dominate
Speaker 1: the the index there or what do you make of it? Yeah,
Speaker 1: I was just listening to Dave's commentary and I think
Speaker 1: his his chart is spot on and it's so relevant
Speaker 1: right now. And what we've seen start to happen as
Speaker 1: the as the reopening and this positive news is priced
Speaker 1: and more, as we have seen a broadening of participation
Speaker 1: in the market and a lot of inks been build
Speaker 1: on that in recent days. But we think it's really
Speaker 1: important because there have been some parts of the market
Speaker 1: that have just been left behind on this rally. I
Speaker 1: mean tech being up uh, you know, seven percent year today,
Speaker 1: meanwhile financials up around you know down excuse me, uh,
Speaker 1: twenty year to date. That's a huge mismatch here between
Speaker 1: the winners and the losers. We like technology, it's an
Speaker 1: area of the market that we've been overweight, but that's
Speaker 1: really been like the only trade of and you know,
Speaker 1: it's it's kind of like congratulations to folks that have
Speaker 1: been overweight there and have have maintained those positions. But
Speaker 1: we think that if we do continue to see markets
Speaker 1: rally on this sentiment and we see more and more
Speaker 1: investors coming off the sidelines, which is what you're seeing,
Speaker 1: you couldn't see this broadening participation in the markets play
Speaker 1: out with areas like small and midcaps coming back. You
Speaker 1: kind of staging some games here as well as potentially
Speaker 1: seeing some ultimate participation from the international side. We're not
Speaker 1: totally sold on the rotation two cyclicals yet from a
Speaker 1: somatic standpoint or a longer term standpoint, we think you
Speaker 1: actually need to see some real meaningful re acceleration and
Speaker 1: economic growth besides just the data getting less worse. So
Speaker 1: we think from a tactical perspective here, investors may want
Speaker 1: to reallocate assets into those parts of the market that
Speaker 1: have been relatively beaten down. And just to press that,
Speaker 1: Emily and keeping what you just said, so your advice
Speaker 1: is trim tech for financials at this point, that's right,
Speaker 1: and again it's a it's likely a bit of a
Speaker 1: tactical trade for now until we get some confirmation that
Speaker 1: we're really going to have this this re acceleration and
Speaker 1: economic growth, and frankly, we're not totally convinced it's there yet.
Speaker 1: Lots of uncertainty still. Economic data is going to get
Speaker 1: you know, still challenged. I mean, I know we're seeing
Speaker 1: um a bounce off the bottom here and a potential
Speaker 1: bottoming process this play out and things like t m
Speaker 1: I data, and that's great and we're optimistic because of it.
Speaker 1: We still think that there's a lot of uncertainty. This
Speaker 1: reopening could be uneven, it could be controversial, we could
Speaker 1: see another way of the virus. Those are all things
Speaker 1: that are just absolutely impossible, are nearly impossible to handicap
Speaker 1: at this point. So we want to stay balanced. We
Speaker 1: want to participate in the market because we want to
Speaker 1: respect the rally here, but we want to do it
Speaker 1: in a really disciplined way. So that means owning some
Speaker 1: quality growth still but potentially thinking about leading more into
Speaker 1: value in order to keep those portfolios balanced. And Emily,
Speaker 1: just before we let you go, I mean, I do wonder,
Speaker 1: you know, as we're into this week, Carol and I
Speaker 1: spent so much of our time every day talking about
Speaker 1: how various businesses have changed. How's your business changed? You know?
Speaker 1: I mean you work with a big group of people, uh,
Speaker 1: with a very well known company, and of course the
Speaker 1: saddest thing about reading the name John Hancock is the
Speaker 1: cancelation of the Boston Marathon. We can dwell on that
Speaker 1: another time. Um, but but I do wonder how your
Speaker 1: day to day has changed and how you think it's
Speaker 1: going to change going forward. Yeah, that's a great question. Um,
Speaker 1: you know many life John Hancock's big company. I think
Speaker 1: we responded really well, um to some of the challenges
Speaker 1: that have been presented. But just like so many other people,
Speaker 1: you know, I've had to adjust to this new environment
Speaker 1: of seeing my time more working from home. I used
Speaker 1: to spend about two thirds of my time out on
Speaker 1: the road meeting with financial advisors. I've tried to replicate
Speaker 1: those conversations, um by doing zoom meetings, but frankly, there's
Speaker 1: just nothing that beats that face to face contact. So
Speaker 1: I am personally really looking forward to re engaging and
Speaker 1: getting back out there. But for now, we're going to
Speaker 1: stay home and do our economic analysis from here and
Speaker 1: also help our kids do their homework. At the same time.
Speaker 1: You sound like you're ready, I'm just gonna put it
Speaker 1: out there, Tom, I have done teaching first and fourth grade.
Speaker 1: I can tell you that us to you right, yeah, exactly,
Speaker 1: all right, Emily Rowland, thank you so much. Co Chief
Speaker 1: Investment Strategies for John Hancock Investment Management. Joining us on
Speaker 1: the phone from Boston, and you know, doing a lot
Speaker 1: of juggling as many of us already, like everybody, and uh,
Speaker 1: you know, we're seeing some sort of return in site.
Speaker 1: We've been talking about it very tentatively, um, but you know,
Speaker 1: it is amazing how much, you know, how long folks,
Speaker 1: especially those those of us who are used to you know,
Speaker 1: being out there, have not been out there at all.
Speaker 1: It's really it's really think about how many trips that
Speaker 1: we didn't take. I was thinking it's about probably like
Speaker 1: a half a dozen, easily, at least in terms of
Speaker 1: being home these last few weeks. Thanks so much for
Speaker 1: listening to Bloomberg Business Week. Download the podcast on iTunes, Southcloud,
Speaker 1: blooberg dot com, or wherever you get your podcasts. And
Speaker 1: of course you can always listen to our radio show
Speaker 1: at two pm Eastern on Bloomberg Radio, or watch us
Speaker 1: on YouTube by searching Bloomberg Global News