WEBVTT - Watching the Virus, Minneapolis Confronts Its Deep Inequality, Protests Are About Poverty 0:00:00.720 --> 0:00:03.760 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:03.800 --> 0:00:06.320 Jason Kelly. We're right here every day bringing you the 0:00:06.400 --> 0:00:11.200 latest news from the world's of business and finance, class, technology, politics, economics, 0:00:11.240 --> 0:00:14.320 all harnessing the power of Business Week reporters and editors, 0:00:14.480 --> 0:00:16.439 and of course Carol that's part of a team of 0:00:16.560 --> 0:00:19.960 twenty seven hundred journalists and analysts and more than a 0:00:20.079 --> 0:00:22.959 hundred and twenty countries and Jason. You can download Bloomberg 0:00:22.960 --> 0:00:26.079 Business Week on iTunes, SoundCloud, o Bloomberg dot com. You 0:00:26.120 --> 0:00:28.240 can also listen to our radio show at two pm 0:00:28.320 --> 0:00:31.200 Eastern on Bloomberg Radio every weekday, or watch us on 0:00:31.240 --> 0:00:34.520 YouTube by searching Bloomberg Global News. Let's set the Business 0:00:34.560 --> 0:00:38.320 week agenda because the markets remain front and center, we 0:00:38.360 --> 0:00:40.839 know for our audience and also as a gauge of 0:00:40.880 --> 0:00:44.559 where we are both economically and what the reaction is 0:00:44.680 --> 0:00:47.680 to all of this that's going on around us. To 0:00:47.720 --> 0:00:50.160 help us do that, Gina Martin Adams is of course 0:00:50.200 --> 0:00:54.920 Bloomberg Intelligence chief equity strategist, and Dave Wilson Bloomberg's Stocks editor. 0:00:55.000 --> 0:00:57.480 They both joined us from New Jersey. Dave, I want 0:00:57.520 --> 0:01:00.360 to start with you just give us the sense as 0:01:00.400 --> 0:01:03.760 you look at the contours of this trade, what's driving 0:01:03.840 --> 0:01:07.640 us up here? Well, it really looks Jason like a 0:01:07.760 --> 0:01:11.679 lot of the shares that have been beaten down over 0:01:11.720 --> 0:01:14.800 the past few months are kind of leading the way 0:01:14.920 --> 0:01:19.080 up here. I mean, you've got a perfect example in Coty. 0:01:19.160 --> 0:01:22.319 I mean, given that they've made a deal with kk 0:01:22.720 --> 0:01:27.080 R for their professional beauty business. We're talking about Claire 0:01:27.120 --> 0:01:32.200 All and Wella. Those brands valued in the transaction of 0:01:32.319 --> 0:01:35.520 four point three billion dollars, and Coty shares are up 0:01:35.560 --> 0:01:39.000 almost seventeen percent, its biggest game in the SMP five hundred, 0:01:39.240 --> 0:01:41.240 and then you see the gap after that, I mean, 0:01:41.240 --> 0:01:43.360 and talking about a stock that's been beaten up lately, 0:01:43.640 --> 0:01:46.240 you know, JP Morgan getting more positive on the company 0:01:46.280 --> 0:01:48.880 given the extent of the stocks decline, and it's up 0:01:48.880 --> 0:01:51.160 more than twelve percent. You know, you go down the list, 0:01:51.240 --> 0:01:56.760 you see uh some of the retailers, uh companies, you know, 0:01:56.800 --> 0:02:00.240 real estate investment trusts actually owned the shopping centers, right 0:02:00.240 --> 0:02:04.280 you know. You you see uh that the cruise lines, 0:02:04.840 --> 0:02:08.239 you know, the the airlines to some extent, the hotels. 0:02:08.280 --> 0:02:10.160 I mean, those are the kind of stocks that are 0:02:10.240 --> 0:02:12.840 leading the way, you know, as much as anything. I mean, 0:02:12.880 --> 0:02:17.680 tech shares aren't even keeping up with the s the moment. Yeah, 0:02:17.680 --> 0:02:19.720 come on in on this. It's an interesting I think 0:02:19.720 --> 0:02:21.960 we all thought, you know that because of some of 0:02:21.960 --> 0:02:24.280 the turmoil that we saw around the nation over the weekend. 0:02:24.919 --> 0:02:29.000 Also China and US tensions seem to be taking another 0:02:29.040 --> 0:02:32.400 step forward, China kind of kicking back here or pushing back. 0:02:32.880 --> 0:02:34.400 I think we thought that there'd be a little bit 0:02:34.440 --> 0:02:38.200 more nervousness in the markets. How do you see it today? Well, 0:02:38.240 --> 0:02:41.720 what I see is a market that continues to broaden um. 0:02:41.760 --> 0:02:44.919 It's a continuation of leadership into as Dave mentioned, the 0:02:44.960 --> 0:02:47.760 beaten down names that's really been going on since late March, 0:02:47.960 --> 0:02:52.239 and it's just continued to gather steam throughout the month 0:02:52.240 --> 0:02:55.440 of May. We saw this gather seemed significantly, but a 0:02:55.480 --> 0:02:58.919 couple of really critical technical threshold where LEAs reached last 0:02:58.960 --> 0:03:01.760 week that are just too tough for investors to continue 0:03:01.760 --> 0:03:03.800 to ignore. I mean, I think the first two months 0:03:03.800 --> 0:03:06.560 of this rally were was a lot about you know, 0:03:06.639 --> 0:03:08.400 kind of taking a leap of faith, and there were 0:03:08.440 --> 0:03:10.679 still a lot of investors sitting on the sidelines, sort 0:03:10.680 --> 0:03:12.960 of poo pooing the rally as a bear market rally 0:03:13.000 --> 0:03:16.280 that will eventually fade and turnover. But last week we 0:03:16.400 --> 0:03:18.840 crossed over the tunit day moving average for the first time. 0:03:18.840 --> 0:03:20.959 We got to the point where nine of stocks in 0:03:21.000 --> 0:03:23.639 the index were trading above their fifty day moving average. 0:03:24.320 --> 0:03:27.720 These types of numbers just don't happen in bear market bounces. 0:03:28.080 --> 0:03:31.200 They usually signify the beginnings of a new uptrend and 0:03:31.200 --> 0:03:34.120 a recovery rally that tends to endure. So I think 0:03:34.120 --> 0:03:37.680 what you're seeing um, both last week and a continuation 0:03:37.720 --> 0:03:41.040 of today, is really investors finally capitulating to the trend, 0:03:41.680 --> 0:03:45.400 rotating into where they see you have the greatest opportunity 0:03:45.400 --> 0:03:48.960 for continued advance, which many would say are the cyclical laggards, 0:03:48.960 --> 0:03:50.760 where you probably still have a little bit of room 0:03:50.800 --> 0:03:54.080 for catchup um and generally starting to put a little 0:03:54.080 --> 0:03:57.000 bit of money to work in equities despite the fact 0:03:57.080 --> 0:04:00.720 that they're kicking and screaming their way in well, it's interesting, 0:04:00.760 --> 0:04:02.480 you know, also kicking and screaming their way in his 0:04:02.560 --> 0:04:06.360 Golden Sacks, which rolled back it's pessimistic outlook for stocks, right, 0:04:06.440 --> 0:04:09.720 David custom Um was predicting the SNP would slum to 0:04:09.800 --> 0:04:13.480 the level, so that was below the Friday clothes and 0:04:13.520 --> 0:04:16.960 now they're saying, okay, yeah, we're gonna you know, go 0:04:17.040 --> 0:04:20.279 all in and like everybody else. Yeah, these kind of 0:04:20.279 --> 0:04:22.960 things always worry me. When everybody starts to capitulate, then 0:04:22.960 --> 0:04:25.159 you want to start to get a little bit more cautious, 0:04:25.160 --> 0:04:27.440 and that is something that we're starting to do. Actually, 0:04:27.440 --> 0:04:29.559 we put a report on the terminal this morning talking 0:04:29.600 --> 0:04:33.000 about you know, while we're very very um, sort of 0:04:33.040 --> 0:04:37.080 suzed by the idea that finally we get to claim 0:04:37.160 --> 0:04:39.800 that this is a recovery rally with the technicals that 0:04:39.839 --> 0:04:44.080 have formed, we also typically find that market advances slow 0:04:44.320 --> 0:04:48.360 following those technical technical and you know measures reached. So 0:04:48.480 --> 0:04:50.880 our view is that we head into a choppier market 0:04:50.920 --> 0:04:54.160 over the summer we start to really question our economic outlook. 0:04:54.800 --> 0:04:57.680 We've seen a lot of rerating on policy and optimism 0:04:57.720 --> 0:05:00.320 that you know, policy will sort of flew been and 0:05:00.400 --> 0:05:03.560 provide enough cover for us to get through this. Now 0:05:03.600 --> 0:05:05.080 I think we get into more of a show me 0:05:05.200 --> 0:05:07.360 market and we start to see, you know, really focus 0:05:07.400 --> 0:05:09.720 on that economic and earning data a little bit more 0:05:09.839 --> 0:05:12.960 for signs of recovery emerging. Yeah, those next earning its 0:05:13.000 --> 0:05:14.680 reports are going to be fascinating to look at all. Right, 0:05:14.720 --> 0:05:17.400 Gina Martin Adams, thank you so much. Well, as we know, 0:05:17.680 --> 0:05:20.320 we talked a little bit about so much going on, 0:05:20.440 --> 0:05:22.880 certainly on this Monday, but we cannot forget that we're 0:05:22.960 --> 0:05:28.039 still in a global pandemic, global deaths exceeding three seventy 0:05:28.279 --> 0:05:31.960 two thousand, lots going on. So let's get an update. 0:05:32.560 --> 0:05:34.440 Let's head back to one of our you know, top 0:05:34.520 --> 0:05:37.120 voices when it comes to what's going on in the virus. 0:05:37.120 --> 0:05:39.960 That's Dr Rod Hawkman. He's president and CEO of Providence Health. 0:05:40.560 --> 0:05:43.600 Of course we've talked to them before, and him specifically 0:05:43.800 --> 0:05:47.200 the massive health system that's out there on the West coast. 0:05:47.480 --> 0:05:51.120 Dr Hawkman joining us on the phone once again from Seattle, Washington. UM. 0:05:51.200 --> 0:05:54.160 Dr Hawkman, nice to have you back with us. UM. 0:05:54.200 --> 0:05:56.600 Tell us a little bit about what you're seeing at 0:05:56.640 --> 0:05:59.120 this point and what it tells you about kind of 0:05:59.120 --> 0:06:00.760 where we are as a kind true when it comes 0:06:00.800 --> 0:06:03.599 to the virus, getting control of the virus, and maybe 0:06:03.720 --> 0:06:06.200 what it helps tell us about what the next few 0:06:06.240 --> 0:06:10.480 months look like. Sure, I think as all positions and 0:06:10.839 --> 0:06:14.440 all people in healthcare, besides the tragic events of the 0:06:14.480 --> 0:06:17.799 weekend and all of that. We're holding our breath watching 0:06:18.040 --> 0:06:21.480 all of these people in close quarters, thinking about what's 0:06:21.600 --> 0:06:24.520 what's going to happen two weeks from now. And you know, 0:06:24.560 --> 0:06:27.120 because we look at it from a clinical standpoint as 0:06:27.200 --> 0:06:30.239 well as from an emotional standpoint, we understand. But wow, 0:06:31.360 --> 0:06:33.400 we just we just see with a lot of the 0:06:33.680 --> 0:06:36.080 opening up of the country, but then particularly with all 0:06:36.120 --> 0:06:39.120 the demonstrations across cross the country, what's going to happen 0:06:39.160 --> 0:06:42.039 in terms of the spread of this virus. So that's 0:06:42.160 --> 0:06:45.000 I think collectively we're holding our breath on that one. 0:06:45.760 --> 0:06:49.000 We were we were comfortable with what were things going. 0:06:49.160 --> 0:06:51.320 I think now it's kind of a wait and watch 0:06:51.360 --> 0:06:54.640 where the next few weeks come. And so Dr Hawkman, 0:06:54.800 --> 0:06:57.320 when you've joined us before, it's clear that you are 0:06:57.360 --> 0:07:00.440 in touch with state officials at the highest level, talking 0:07:00.440 --> 0:07:03.599 to CEOs and and others. I believe you were in 0:07:03.640 --> 0:07:07.880 consultation with the Business Roundtable and and other corporate groups 0:07:08.160 --> 0:07:11.240 help us understand what folks at that level are are 0:07:11.280 --> 0:07:15.600 talking about now, especially as we think about reopening in 0:07:15.640 --> 0:07:19.240 a very cautious way across the country. So I think 0:07:19.240 --> 0:07:22.000 there are two things. One is we're giving out a 0:07:22.040 --> 0:07:24.520 lot of advice on what's the best way to do it. 0:07:24.920 --> 0:07:27.520 And I have to say, from the business standpoint, a 0:07:27.560 --> 0:07:29.760 lot of the studios and companies are doing a great 0:07:29.840 --> 0:07:33.240 job thinking through how they get their workers back, what's 0:07:33.280 --> 0:07:35.800 the best thing to do. They're getting a lot of 0:07:35.880 --> 0:07:39.160 great medical input, so I was really pleased just to 0:07:39.200 --> 0:07:42.560 see the way they responded. And then the second is 0:07:42.880 --> 0:07:47.120 specifically with a lot of the pharmas studios talking about 0:07:47.280 --> 0:07:50.239 vaccine development. And the thing that I've been worrying about 0:07:50.280 --> 0:07:53.440 most is not as much about the vaccine development, but 0:07:53.560 --> 0:07:56.960 are we going to have the delivery mechanisms for those vaccines? 0:07:57.080 --> 0:08:01.200 Enough glass files, enough needles? And then it's that priority 0:08:01.200 --> 0:08:05.040 by which we start vaccinating three hundred plus million Americans? 0:08:05.360 --> 0:08:07.240 Who do we start with? How do we do that? 0:08:07.680 --> 0:08:10.160 Those are all the preparations that we need to do 0:08:10.280 --> 0:08:13.559 now for six months from now, and I was glad 0:08:13.600 --> 0:08:16.320 to see at least the business community and they I 0:08:16.520 --> 0:08:20.040 just talked in to the CEO of a major pharmaceutical 0:08:20.080 --> 0:08:22.640 company said look, we just spent the last three hours 0:08:22.680 --> 0:08:25.240 on that topic. So I was pleased to hear that 0:08:25.760 --> 0:08:28.640 do we need fitfull government involvement in order to do 0:08:28.720 --> 0:08:30.760 it um the way that it needs to be done, 0:08:30.760 --> 0:08:33.600 so that we are ready in six months perhaps when 0:08:33.600 --> 0:08:36.880 a vaccine is there. Yeah, I think the CEOs have 0:08:37.040 --> 0:08:39.640 gone beyond that and are just saying, Okay, how do 0:08:39.679 --> 0:08:41.720 we get this done? I think we need to have 0:08:41.800 --> 0:08:46.000 coordination between the farmer companies and then then each state 0:08:46.679 --> 0:08:48.320 is going to have to figure out how does it 0:08:48.400 --> 0:08:51.680 vaccinate its population. And one of the things that we 0:08:51.800 --> 0:08:54.959 have is that we do the influenza vaccine every year. 0:08:55.840 --> 0:08:57.959 Might that not be a good starting place to figure 0:08:57.960 --> 0:09:01.000 out how do we distribute the vaccine mean and everything else? 0:09:01.040 --> 0:09:03.760 So I said, what's happened? I think in this next 0:09:03.800 --> 0:09:09.040 phase people are just moving beyond And so Dr Huchman 0:09:09.080 --> 0:09:12.160 just staying with with vaccines for a moment. As you're 0:09:12.160 --> 0:09:15.240 talking to these CEOs and and other folks within the 0:09:15.280 --> 0:09:19.120 medical community, and I know you're talking to researchers and whatnot. 0:09:19.320 --> 0:09:24.480 What's the realistic timetable? I mean, is six months still 0:09:24.520 --> 0:09:28.199 realistic in terms of getting something that is, if not 0:09:28.480 --> 0:09:32.400 sort of mass available available to the extent that it 0:09:32.480 --> 0:09:36.040 really makes a dent and how we can live our lives. Right, So, 0:09:36.120 --> 0:09:39.080 I think there's two aspects of this. One is, you know, 0:09:39.160 --> 0:09:42.320 kind of the ethical one where a number of people 0:09:42.520 --> 0:09:46.160 have agreed to get actually infected with COVID if they've 0:09:46.200 --> 0:09:49.720 gotten on the vaccine, to accelerate the process to look 0:09:49.760 --> 0:09:53.160 at the efficacy because ultimately, if you have to wait 0:09:53.200 --> 0:09:56.080 for you know, the natural progression of the disease, it 0:09:56.160 --> 0:09:59.280 takes time. So a lot of people are working through that. 0:09:59.400 --> 0:10:03.400 If that happens, that's going to really accelebrate the development 0:10:03.760 --> 0:10:07.880 of understanding whether we have an effications of vaccine. So 0:10:07.920 --> 0:10:11.040 that's going to be a big, big step there. But 0:10:11.120 --> 0:10:14.080 it's really exciting amount of research that's being done and 0:10:14.240 --> 0:10:18.000 more thunlikely we'll have more than one vaccine. It's going 0:10:18.080 --> 0:10:20.560 to be several different ones that we're going to be 0:10:20.559 --> 0:10:23.840 looking at. If I can switch gears just for a segment, 0:10:24.040 --> 0:10:26.000 Dr Hawkman, I think all of us, you know, there 0:10:26.120 --> 0:10:28.960 was a story, several stories that have come out, and 0:10:29.080 --> 0:10:31.480 I know Bloomberg News is covered as well about you know, 0:10:31.600 --> 0:10:34.080 the amount of bailout money that went to different hospital 0:10:34.080 --> 0:10:36.400 systems and I think you folks got about half a 0:10:36.400 --> 0:10:40.120 billion dollars. Help us understand because you're one of the 0:10:40.160 --> 0:10:42.640 more you know, one of the largest systems in the 0:10:42.679 --> 0:10:46.200 country and one of the more I guess financially solvent 0:10:46.480 --> 0:10:52.079 hospital systems. Help us understand how that makes sense? So okay, 0:10:52.240 --> 0:10:55.240 I'm so glad to asked that question. I think I 0:10:55.320 --> 0:10:58.760 need to teach the New York Times about numerator and denominator. 0:10:59.240 --> 0:11:02.080 We have f we have fifty one hospitals, we have 0:11:02.080 --> 0:11:05.760 a hundred twenty thousand people, and we're in seven states. 0:11:06.280 --> 0:11:09.280 So obviously when you break that down hospital and household 0:11:09.320 --> 0:11:13.040 by clinic, it's actually a smaller amount that has happened 0:11:13.040 --> 0:11:16.719 in other places. Secondly, you know, we reminded them that 0:11:17.200 --> 0:11:19.160 they who were printed that we do about a billion 0:11:19.240 --> 0:11:23.040 and a half dollars of free care each year and 0:11:23.120 --> 0:11:26.679 community service. And then the third is on a on 0:11:26.760 --> 0:11:30.200 an ibadah and margin basis. We're a one to two 0:11:30.240 --> 0:11:33.760 percent margin operations. So I wish, you know, I wish 0:11:33.760 --> 0:11:36.679 I was a silicon powerhouse and all the words that 0:11:36.840 --> 0:11:39.560 they used, and uh, you know, I think most of 0:11:39.559 --> 0:11:42.679 them in healthcare saw how long they got the story. 0:11:43.280 --> 0:11:45.240 Uh they were just looking at the you know, the 0:11:45.280 --> 0:11:48.400 top nine one one was that were given out, you know, 0:11:48.559 --> 0:11:50.679 and then also weren't working well are the areas of 0:11:50.720 --> 0:11:53.120 the country that were most affected. Obviously we're in Los 0:11:53.160 --> 0:11:57.319 Angeles and Seattle that we're heavily affected by COVID nineteen. 0:11:57.480 --> 0:12:00.920 So I could go on and on, but it's it's 0:12:01.000 --> 0:12:05.040 unfortunate how a lot of the stories get editorialized and 0:12:05.080 --> 0:12:07.800 aren't based on the side, right, Dr Hawkman, we really 0:12:07.800 --> 0:12:11.280 appreciate your input at as always, Dr Hawkman from Providence Health. 0:12:11.559 --> 0:12:14.400 You are listening to Bloomberg Business Week, and I have 0:12:14.480 --> 0:12:16.840 to say, like many people, I was reading everything I 0:12:16.840 --> 0:12:19.400 could get my hands on over the weekend and was 0:12:19.520 --> 0:12:22.880 so happy to come across the story by Peter Coy 0:12:23.160 --> 0:12:26.080 because we look to him to just put things in perspective, 0:12:26.120 --> 0:12:30.720 and his peace it's online and on the Bloomberg about Minneapolis, 0:12:31.040 --> 0:12:33.440 is really a terrific read. He joins us on the 0:12:33.440 --> 0:12:36.400 phone from New Jersey, as does Joel Webber, the editor 0:12:36.440 --> 0:12:39.480 Bloomberg Business Week. He's on our remote line from Brooklyn. 0:12:39.800 --> 0:12:42.560 So Joel, this was one of these I don't know, 0:12:42.880 --> 0:12:45.200 it's hard to sort of say it's a gift at 0:12:45.200 --> 0:12:48.520 a time when there's so much turmoil going on, but 0:12:48.559 --> 0:12:51.880 it really was some important perspective help us understand what 0:12:51.960 --> 0:12:55.520 Peter set out to do before we get to him. Uh. Well, 0:12:55.559 --> 0:12:57.800 I mean, first of all, like the country is just 0:12:57.880 --> 0:13:02.000 reeling right now. And um, that was even before the 0:13:02.040 --> 0:13:05.839 weekend started. And Um, I was talking with Peter a 0:13:05.880 --> 0:13:08.359 little bit and he said, you know, I know Jacob Frey. 0:13:08.480 --> 0:13:12.280 Uh and and that immediately just caught my attention because um, 0:13:12.320 --> 0:13:15.560 you know, I just always respect sort of wherever Peter's 0:13:15.720 --> 0:13:19.199 mind goes. UM. But the really the angle that he 0:13:19.720 --> 0:13:22.200 hit on here was UM one that kind of I 0:13:22.240 --> 0:13:25.240 think is, you know, it's very prescient and that it 0:13:25.360 --> 0:13:29.520 takes into account everything that Minneapolis has really gone through, 0:13:29.559 --> 0:13:32.360 not only on phrase watch, but just historically. And I 0:13:32.400 --> 0:13:36.080 think that that infused um in the article and it 0:13:36.120 --> 0:13:38.160 also helps us make sense of what happened in Minneapolis, 0:13:38.200 --> 0:13:42.400 which then led to obviously a much bigger national moment 0:13:42.440 --> 0:13:45.400 that we're all watching very closely now. Um, Peter, what 0:13:45.480 --> 0:13:47.599 was for you when you kind of look at it 0:13:48.080 --> 0:13:51.160 Frey and Minneapolis? What are the what are the elements 0:13:51.200 --> 0:13:55.360 that have jumped out to you? Oh, Minneapolis is well 0:13:55.400 --> 0:14:00.320 known as really a mecca of corporate philanthropy. You know, 0:14:00.360 --> 0:14:07.320 they have a really dense concentration of fortune companies and uh, 0:14:07.360 --> 0:14:09.280 you know, I can go down the list, but three 0:14:09.480 --> 0:14:15.199 m Best by Target on Non and John t Rockefeller 0:14:15.240 --> 0:14:18.880 back in the nineteen seventies. The third that is visited 0:14:19.320 --> 0:14:22.760 Minneapolis partly just to see, you know, how could this 0:14:23.240 --> 0:14:27.320 one city be so famous for its corporate giving and 0:14:27.400 --> 0:14:30.120 yet at the same time they have a very bad 0:14:30.200 --> 0:14:34.440 problem of racial inequality in housing and incomes and so on. 0:14:35.120 --> 0:14:38.600 So I just think it's it's tragic and it deserves 0:14:39.120 --> 0:14:42.480 more study. Partly because the people who you know, subscribe 0:14:42.520 --> 0:14:45.240 to Bloomberg Re, Bloomberg Business and Blosom Blomberg Radio are 0:14:45.280 --> 0:14:47.280 the kind of people who work for some of these 0:14:47.400 --> 0:14:51.000 companies and think of themselves as doing the right thing, 0:14:51.040 --> 0:14:53.800 and yet somehow the right outcomes are not happening well. 0:14:53.840 --> 0:14:55.680 And I'm going to say, you know, we have a 0:14:55.720 --> 0:14:58.720 guest coming up after this, John O'Brien at Operation Hope, 0:14:58.720 --> 0:15:01.240 and I want to talk to about responsibility and all 0:15:01.280 --> 0:15:03.560 of this, because, as you say, Peter, you know the 0:15:03.600 --> 0:15:06.520 Twin Cities. I mean, it's like a who's who lists, 0:15:06.560 --> 0:15:09.840 Who's whose list of of corporate America, Target, Cargill, Metronic, 0:15:10.000 --> 0:15:13.760 three m Eco, Lapse, General Mills, Best by US Bank, 0:15:13.960 --> 0:15:17.000 and you know, We've had conversations with so many different 0:15:17.000 --> 0:15:21.240 executives at different firms about you know, diversity, inclusion, equality, 0:15:21.640 --> 0:15:25.200 you know, putting you know, programs in place at companies, 0:15:25.240 --> 0:15:29.119 and yet here we are. Ye, yep, that's the tragedies. 0:15:29.720 --> 0:15:33.200 So I know Jacob bry the mayor, he was a 0:15:33.320 --> 0:15:36.320 runner UM. He actually represented the U S and the 0:15:36.360 --> 0:15:39.440 Pan American Games in the marathon, and then at a 0:15:39.480 --> 0:15:42.400 young age he became the mayor. Is very progressive kind 0:15:42.400 --> 0:15:46.120 of guy. And here he was doing sort of the 0:15:46.240 --> 0:15:49.920 right things to put Minneapolis on the track to reduce 0:15:49.960 --> 0:15:53.680 some of this racial inequality. This came along and it's 0:15:53.720 --> 0:15:56.960 just devastating the city and it's gonna be hard to 0:15:57.000 --> 0:16:02.040 rebuild from this, you know, Peter. We wrote a feature UM, 0:16:02.360 --> 0:16:05.280 which you say in your story last year sort of 0:16:05.320 --> 0:16:09.960 about UM, this movement that's been happening across the country 0:16:10.240 --> 0:16:13.160 UM and Minneapolis became one of the most interesting places 0:16:13.160 --> 0:16:17.400 to watch, which is about Yembi and Nimbi and and 0:16:17.480 --> 0:16:22.040 sort of the end of zoning single family housing. UM. 0:16:22.440 --> 0:16:25.360 What is the role between that and sort of what's 0:16:25.360 --> 0:16:30.400 happening What's happened in Minneapolis over time, So a lot 0:16:30.440 --> 0:16:34.280 of cities around the country had basically segregation Blacks are 0:16:34.280 --> 0:16:37.920 not allowed to live in certain neighborhoods, and that went away, 0:16:38.240 --> 0:16:41.400 but it was kind of replaced by zoning laws, which 0:16:41.440 --> 0:16:46.560 were not on their face segregationists, but had some of 0:16:46.600 --> 0:16:50.920 the same effects. U the residential land in Minneapolis has 0:16:51.400 --> 0:16:54.560 has been zoned for single families. A lot of blacks 0:16:54.600 --> 0:16:57.600 could not afford to buy houses, and they were stuck 0:16:57.600 --> 0:17:00.600 in apartments and not able to build wealth and of 0:17:00.600 --> 0:17:04.720 course segregated. Um So, Mineapolis became the first big city 0:17:04.800 --> 0:17:10.560 the United States in to repeal single family housing, which 0:17:10.600 --> 0:17:14.359 allows partment buildings to be built all around the city. 0:17:14.800 --> 0:17:18.560 This is quite a dramatic event because you can imagine 0:17:18.560 --> 0:17:21.720 how many homeowners you might have been expected to resist this, 0:17:21.880 --> 0:17:24.680 and yet it passed the council and proved by the mayor. 0:17:25.480 --> 0:17:28.119 And it's uh, that's what I'm talking about when to 0:17:28.119 --> 0:17:31.639 talk about the city trying to move towards, you know, 0:17:31.760 --> 0:17:35.359 fixing its original sins. And that's why it's so tragic 0:17:35.880 --> 0:17:38.919 that this happened anyway, when they seem to be on 0:17:39.520 --> 0:17:43.640 a course towards better at times. And I know it, Peter, 0:17:43.720 --> 0:17:47.000 it's impossible to predict anything. These days, and certainly it's 0:17:47.040 --> 0:17:48.879 it's too soon to make a lot of predictions about 0:17:49.359 --> 0:17:53.639 what happens tonight, very much less what happens in the 0:17:53.680 --> 0:17:57.080 near to mid term. But you know, what does Minneapolis 0:17:57.119 --> 0:17:59.800 do at this point? And knowing what you do know 0:17:59.840 --> 0:18:02.719 about the leadership there, what do you think the playbook is? 0:18:03.840 --> 0:18:05.800 I think we have to go back to the nineteen 0:18:05.880 --> 0:18:07.879 sixties to see how it played out back then, and 0:18:07.960 --> 0:18:11.920 this is similar in some ways. It's it's a very 0:18:11.960 --> 0:18:14.639 slow process of healing. I'm I'm sorry to say that 0:18:14.720 --> 0:18:17.399 it doesn't always work. I mean, there are cities like 0:18:17.800 --> 0:18:22.199 Newark and Detroit that we're really lastingly damaged by the 0:18:22.280 --> 0:18:26.119 riots they had. It was white flight, there was business flight, 0:18:26.680 --> 0:18:31.679 and there to this day depopulated and poorer than they 0:18:31.680 --> 0:18:35.600 were before those riots. Are just praying that doesn't happen 0:18:35.600 --> 0:18:40.080 this time. All right, Well, we're gonna leave it there. 0:18:40.200 --> 0:18:44.199 We thank you both so much. Peter Coy joining us 0:18:44.240 --> 0:18:47.159 Economic Cetera for Bloomberg Business Week, joining us on the 0:18:47.200 --> 0:18:50.080 phone from New Jersey, and Joel Webber, the editor of 0:18:50.119 --> 0:18:54.159 Bloomberg Business Week, joining us from Brooklyn and Carol. It 0:18:54.240 --> 0:18:57.120 really is one of those stories that reminds us I 0:18:57.160 --> 0:18:59.119 think something that we're gonna be talking about throughout the 0:18:59.119 --> 0:19:01.480 course of this show and and I'm guessing throughout the 0:19:01.520 --> 0:19:04.720 course of this week and maybe longer, which is everything 0:19:05.080 --> 0:19:07.720 quoting Joe Webber is a business story in many ways, 0:19:07.720 --> 0:19:12.760 and the economics of a place and the role of corporations. 0:19:13.000 --> 0:19:14.679 And as you said, we're going to talk about this 0:19:14.720 --> 0:19:17.119 in just a few minutes with John Hope Bryant. It 0:19:17.200 --> 0:19:19.480 has become even more important. And one of the things 0:19:19.520 --> 0:19:21.680 that that I've been thinking a lot about, and I'm 0:19:21.680 --> 0:19:24.840 guessing you have too, is this notion of what do 0:19:24.880 --> 0:19:27.320 we expect companies to do? And what do we expect 0:19:27.359 --> 0:19:29.560 them to say? And maybe in reverse order we know 0:19:29.600 --> 0:19:31.320 that they're going to say something, what do we expect 0:19:31.359 --> 0:19:34.360 them to do? What is their responsibility at a time 0:19:34.400 --> 0:19:36.440 like this? And I feel like now more than ever, 0:19:37.240 --> 0:19:40.320 they have to act well, you know, this is no nothing. 0:19:40.320 --> 0:19:42.040 You know, it's not dissimilar to what we've been talking 0:19:42.040 --> 0:19:44.840 about with the virus about you know, these inequalities. It's 0:19:44.840 --> 0:19:46.879 not like they all of a sudden just happened because 0:19:46.920 --> 0:19:49.040 of the virus. The same thing, you know, with what 0:19:49.040 --> 0:19:51.199 we've seen play out in Minneapolis and really you know, 0:19:51.320 --> 0:19:55.199 elsewhere around the country. UM, not everyone is given the 0:19:55.320 --> 0:19:59.400 same equal start or you know, or access to opportunities. 0:19:59.440 --> 0:20:02.040 And we've talked so much about kind of you know, 0:20:02.119 --> 0:20:05.360 where you grow up. UM often means what kind of 0:20:05.480 --> 0:20:08.320 perhaps public education you get, and that means what kind 0:20:08.320 --> 0:20:10.280 of higher education you get, and what kind of job 0:20:10.280 --> 0:20:12.120 you get it and what kind of health care you get. 0:20:12.160 --> 0:20:15.439 I mean, it's you know, it's all connected, and you know, 0:20:15.480 --> 0:20:18.080 I think it's really remarkable what the Minneapolis mayor tried 0:20:18.119 --> 0:20:19.960 to do in terms of single family zoning. I mean, 0:20:20.200 --> 0:20:23.679 this is how you start to change things. And I agree, Jason. 0:20:23.760 --> 0:20:25.960 I feel like we've been having these conversations. I know 0:20:26.040 --> 0:20:29.160 I certainly have in my career for years. And so 0:20:29.400 --> 0:20:32.000 enough talking and let's actually start to see some action. 0:20:32.760 --> 0:20:36.359 You're listening to Bloomberg Business Week with Carol Masser and 0:20:36.440 --> 0:20:40.520 Jason Kelly on Bloomberg Radio Back with Us as John 0:20:40.520 --> 0:20:42.879 Hope Bryant. He's the founder, chairman and CEO of the 0:20:42.920 --> 0:20:46.680 Atlanta based Operation Hope. John is also chairman in chief 0:20:46.680 --> 0:20:50.280 executive officer Bryant Group Ventures and co founder of Global Dignity. 0:20:50.640 --> 0:20:54.160 He joins us on the phone from Atlanta. John, It's 0:20:54.240 --> 0:20:55.560 nice to have you back with us, but I do 0:20:55.600 --> 0:20:59.080 wish it was under different circumstances. I do feel like, 0:20:59.600 --> 0:21:02.280 you know, like the virus, there are things that persist 0:21:02.320 --> 0:21:06.000 in our society and equalities and justices, lack of accountability. 0:21:06.640 --> 0:21:10.600 You know that we're there, but we're seeing them once 0:21:10.600 --> 0:21:14.560 again front and center. It's it's horrible. I do wonder 0:21:14.880 --> 0:21:18.840 you know, what happens as a result of what's happening 0:21:18.920 --> 0:21:25.200 in Minneapolis right now? What changes? Uh, you know, consciousness. 0:21:25.240 --> 0:21:27.800 It's like a rubber band that has expanded, you know, 0:21:27.880 --> 0:21:30.600 it never returns to its original side. First of all, 0:21:30.640 --> 0:21:32.600 thank you and your colleagues for all that you do. 0:21:33.000 --> 0:21:35.040 Thanks for being a light on the heel in a 0:21:35.080 --> 0:21:38.480 moment of darkness. The media is playing an outsize role 0:21:38.720 --> 0:21:41.520 in our consciousness these days because some of our national 0:21:41.640 --> 0:21:45.240 leaders are not stepping up in a way that it's holistic, 0:21:45.359 --> 0:21:48.159 that's bridge building, that's bringing us together, that's providing a 0:21:48.280 --> 0:21:50.359 light and a way forward. So thank you guys for 0:21:50.440 --> 0:21:53.040