Speaker 1: This is Bloomberg Business Week. I'm Carol Masser and I'm
Speaker 1: Bloomberg Quick Takes Tim Stanovk. We're here every day bringing
Speaker 1: you the latest news from the world to business and finance,
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Speaker 1: You can also listen to our radio show at two
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Speaker 1: YouTube search Bloomberg Global News. Let's get right to it,
Speaker 1: because we've got a great guest when it comes to
Speaker 1: COVID nineteen and the virus, and there's a lot of
Speaker 1: things on our minds. Back with us is Dr Chris Bier.
Speaker 1: He is Professor of Epidemiology and Public Health and Human
Speaker 1: Rights at Johns Hopkins University Bloomberg School of Public Health,
Speaker 1: supported of course, by Michael R. Bloomberg, Founder, Bloomberg LP
Speaker 1: and Bloomberg Philanthropies. He's also Senior Scientific Liaison at the
Speaker 1: COVID Vaccine Prevention Network. He is back with us on
Speaker 1: the phone from Baltimore. Dr Bira, how are you very well,
Speaker 1: good to be with you, Good to have you here.
Speaker 1: How do you think we're doing in the United States
Speaker 1: when it comes to the vaccine rollout specifically and getting
Speaker 1: ahead of the mute the mutants that are out there,
Speaker 1: the mutations, and getting to hurt immunity fast enough. Well,
Speaker 1: the good news here really is that we have two
Speaker 1: are very safe and effected vaccines, the two Messenger RNA
Speaker 1: vaccines UM, the Moderna and the Visor. Those of course,
Speaker 1: are both two dose vaccines. They have not had some
Speaker 1: of the same problems that have emerged with the with
Speaker 1: the Jansen, the Johnson and Johnson vaccine, where the Astra
Speaker 1: Zeneca vaccine this is the challenge that has been rare,
Speaker 1: but nevertheless significant complication and blood clots. We don't see
Speaker 1: those with either the Visor or the Maderna. So our
Speaker 1: vaccine rollout is going really very well. UM. We're over,
Speaker 1: you know now three million adults the immunized every day. UM.
Speaker 1: And we're expecting emergency used authorization for the Fiser vaccine
Speaker 1: to go down to twelve to seventeen year olds as well.
Speaker 1: That may happen fairly soon. Can we get out of
Speaker 1: the pandemic. Though, if people under the age of twelve
Speaker 1: cannot be vaccinated, well about of the American population is
Speaker 1: children under aged eighteen TI. So it is very important
Speaker 1: that we learn as quickly as we can. Uh, if
Speaker 1: these vaccines are as safe and effective in children as
Speaker 1: they are in adults. Um, that process is mostly being
Speaker 1: led right now by the companies themselves. That trials are
Speaker 1: under way. Um, we have the data, as I said,
Speaker 1: from the twelve to seventeen year olds. Uh, the we
Speaker 1: really need to accelerate the research effort for the five
Speaker 1: to twelve year old right, And of course that's so
Speaker 1: important for them for you know, getting back to of
Speaker 1: seeing their friends and getting back to school and and
Speaker 1: getting back to acted life, which so we really need
Speaker 1: for our kids, right, getting back to you know, a
Speaker 1: so called normal life. The thing is, I mean, bottom line,
Speaker 1: vaccines are the way out of the pandemic done right,
Speaker 1: no question, no question. So if we don't get to
Speaker 1: her immunity, what does our world look like? Well, right
Speaker 1: now we have a couple of very specific challenges. People
Speaker 1: have described this as a race between the vaccine rollout
Speaker 1: and the emergence of these new variants the mutants that
Speaker 1: you were mentioning, and that really is a challenge. Some
Speaker 1: of these new variants are more infectious than the viruses
Speaker 1: we first encountered UM, some of them have more resistance
Speaker 1: to the broadly neutralizing anybody's that we've been using, and
Speaker 1: at least one, for sure, the variant that was first
Speaker 1: identified in South Africa does appear to be a challenge
Speaker 1: for at least the astra Zenica vaccine. The good news
Speaker 1: is that they both the Messenger RNA vaccines Byserne Moderna,
Speaker 1: and as far as we can tell, the Johnson and
Speaker 1: Johnson vaccines do appear to provide good, robust protection against
Speaker 1: the variants that are circulating now. But what we're learning
Speaker 1: with this virus is that mutations keep happening UH, and
Speaker 1: we really have to get ahead of those mutations. The
Speaker 1: big challenge right now is that the vaccine rollout is
Speaker 1: sold in much of the rest of the world. That's
Speaker 1: because the rest of the world doesn't have the same
Speaker 1: access to the Messenger RNA's they were relying on Astra
Speaker 1: Zenica and Johnson and Johnson UH, and we are seeing
Speaker 1: huge surges of infection in places like India and Brazil, uh,
Speaker 1: much of South America in fact. And if we can't
Speaker 1: do better with getting control of those epidemics and getting
Speaker 1: those populations, I mean, uh uh, the current generation of
Speaker 1: vaccines may be undermined by these new variants. That's a
Speaker 1: real threat, and we're working very hard to prevent that scenario.
Speaker 1: So Dr Byra, what is the solution here? I mean
Speaker 1: it sounds like what the only the only thing to
Speaker 1: do is to for the US to take a leading
Speaker 1: role in making sure that the rest of the world
Speaker 1: is vaccinated. I think that's absolutely essential. I think there
Speaker 1: are going to be a couple of important steps in
Speaker 1: that direction. First of all, you may have seen that
Speaker 1: earlier this week the European Medicines Association did approve going
Speaker 1: forward with use of the Johnson and Johnson vaccine with
Speaker 1: a guidance that there is a rare but serious complication
Speaker 1: associated with blood clocks. Most of those have been seen
Speaker 1: in women underage thing. Um, so there is going to
Speaker 1: be a guidance. There's a hearing on Friday with the
Speaker 1: Advisory Committee on Immunization Practices. This is the US independent
Speaker 1: body that gives guidance to the CDC. I think many
Speaker 1: expect in the field. They have been collecting and looking
Speaker 1: for more data on the blood clot It's very likely
Speaker 1: if we think that they are going to do the
Speaker 1: same thing as the European regulatory body, which is to
Speaker 1: say they will approve continuing use of that vaccine with
Speaker 1: the guidance for providers, with the caution about the rare
Speaker 1: blood clots. Uh. The right apparently identified a few more cases,
Speaker 1: but it seems like it's a handful, and roughly we're
Speaker 1: talking about one in a million. I want to get
Speaker 1: right back to Dr Chris Buyer, Professor of Public Health
Speaker 1: and Human Rights at the Johns Hopkins Bloomberg School of
Speaker 1: Public Health, also senior scientifical liaison at the COVID Vaccine
Speaker 1: Prevention Network, still with us on the phone from Baltimore.
Speaker 1: Dr Buyer, a listener listening in on our conversation has
Speaker 1: a question for you, and basically is asking, how can we,
Speaker 1: as parents and good conscious and conscious ask our kids
Speaker 1: to get shots when we have no data to support
Speaker 1: the side effects on kids. Furthermore, this disease is not
Speaker 1: a real risk for anyone under thirty. Deaths under the
Speaker 1: age of eighteen represent point zero zero zero seven. Basically
Speaker 1: they're saying that kids are going to be okay, So
Speaker 1: why are we going to maybe potentially put them at
Speaker 1: risk by giving them a shot. How can we do
Speaker 1: this in good conscience? Well, the first thing could say is,
Speaker 1: of course, that we wouldn't ask anybody to have their
Speaker 1: children be immunized until we have the data. And so
Speaker 1: those trials are underway UH And as I said earlier,
Speaker 1: the twelve to seventeen year old data from the Visor
Speaker 1: UH trial is going to the f D, A, M,
Speaker 1: and H and being reviewed. So so I think the
Speaker 1: caller is absolutely right that we need to see those data,
Speaker 1: and parents are going to want to see that before
Speaker 1: they immunize. I think it's a common misconception to compare
Speaker 1: COVID nineteen UH disease and deaths and children with those
Speaker 1: and adults. The real question is comparing COVID nineteen disease
Speaker 1: and deaths and children with other vaccine preventable diseases and children.
Speaker 1: And when you do that, they're close to three children
Speaker 1: who died already of COVID in the United States. UH.
Speaker 1: Looks actually like quite a severe UH number of cases
Speaker 1: and a vaccine preventable infection, we hope, So I think
Speaker 1: that's more compelling. UM. It's also the case that, UM,
Speaker 1: while children have had much lower rates of illness and
Speaker 1: death from COVID, they've had a very high burden of
Speaker 1: non health issues. The social isolation is hard for kids,
Speaker 1: to developmental issues, the educational issues that parents are so
Speaker 1: concerned about. And we think, particularly for the twelve to
Speaker 1: seventeen year olds, that vaccination is really going to help
Speaker 1: them be able to engage again in sports and after
Speaker 1: school activities and being with their friends. So those those
Speaker 1: all get weighed in the The non medical complications of
Speaker 1: COVID for kids have been severe. All right, Dr Buyer,
Speaker 1: I just want to ask about messaging around vaccines, because
Speaker 1: there there has been this idea that, you know, we're
Speaker 1: still wearing masks after getting a vaccine, We're still being cautious. Uh.
Speaker 1: And I'm wondering if it's sending the wrong message about
Speaker 1: the benefits of the vaccine. It had Dector Amish at
Speaker 1: Dolls or one of your colleagues from the from the
Speaker 1: Bloomberg School of Public Health on our show or quick
Speaker 1: take earlier today, and he's all for you know, eating
Speaker 1: in restaurants without masks after getting a vaccine and really
Speaker 1: going back to everything that he was doing before the
Speaker 1: pandemic hit. Well, I think you know, it is really
Speaker 1: important to say that these vaccines have high efficacy against
Speaker 1: this virus and particularly against serious disease. Uh, so we
Speaker 1: can do more. The CDC guidance is very clear that
Speaker 1: immunized folks can meet at home, you can meet indoors
Speaker 1: without masks. That a huge difference for families and friends,
Speaker 1: people getting together. Um, they're also the CDC guidance is
Speaker 1: also the immunized people and Mrs Williamans, two weeks after
Speaker 1: your second dose with either the visor of the MODERNA
Speaker 1: n F J and J is approved again on Friday,
Speaker 1: as we think it may be for emergency use. Then
Speaker 1: two weeks after your one dose of J and J
Speaker 1: uh that people can travel. We still want people to
Speaker 1: wear masks. We still want to keep that social distancing,
Speaker 1: although now it has been changed for the CDC from
Speaker 1: six to three ft. That's very important for getting kids,
Speaker 1: for example, back into school. Just very quickly thirty seconds here,
Speaker 1: the US has come out and basically banned international travel
Speaker 1: to most countries. Would you agree that we need to
Speaker 1: stay home at least for now and just quickly if
Speaker 1: you could, yes, right now. I think given the variants
Speaker 1: that are spreading in other countries and the surges that
Speaker 1: are underway, domestic travel in the US is okay for
Speaker 1: fulliam and as people, according to the CDC International Travel,
Speaker 1: we have to be very careful. What a great interview.
Speaker 1: Thank you so much, Dr Chris byro Thank you, Thank you,
Speaker 1: Professor of Epidemiology, Public Health, and Human Writers at Johns
Speaker 1: Hopkins University, Bloomberg School of Public Health, of course, supported
Speaker 1: by michaelar Bloomberg, founder of Bloomberg ELP and Bloomberg phil Anthapis.
Speaker 1: I feel like they had a checklist and we were like,
Speaker 1: let's get through this. We got we got all important
Speaker 1: comments about kids too, Yeah, very much so, because we've
Speaker 1: got to be thinking about that. This is Bloomberg Business
Speaker 1: Week with Carol Messer and Bloomberg Quick Takes Tim Stinovich
Speaker 1: from Bloomberg Radio in the Finance section of the upcoming
Speaker 1: issue of Bloomberg Business Week magazine. This week, it's the
Speaker 1: app that made trading easy, tim and maybe even just
Speaker 1: a little too hard to resist. We are, of course
Speaker 1: talking about Robin Hood, Joe Weber's editor at Bloomberg Business Week,
Speaker 1: joining us on the remote from Brooklyn and Mr Lena
Speaker 1: Golfa poulu is, personal finance reporter at Bloomberg News. It
Speaker 1: is a fantastic story, Joel. My understanding is it was
Speaker 1: months in the making. Why did you approach it this way?
Speaker 1: Right about the design of the app? I think that
Speaker 1: that it was rooted in um. Missy's original idea was,
Speaker 1: which was, you know, we we know what Robin hood
Speaker 1: Um represents now and we know how it's caught on,
Speaker 1: but you know, where did it really come from? And
Speaker 1: so she dug into sort of the a little bit
Speaker 1: of the early days and what the design uh kind
Speaker 1: of looked like very early on, and and found an
Speaker 1: interesting character. So so Missy, tell us who you found? Yeah,
Speaker 1: thanks for having me on. So, I think, sort of
Speaker 1: echoing what Joel is saying, you know, the entire Robinson
Speaker 1: phenomenon that we've seen sort of pan out in the
Speaker 1: past year ultimately comes down to its app. And so
Speaker 1: as we were reporting the story out, you know, an
Speaker 1: important part was figuring out what the influence was. And
Speaker 1: that's where near y'all comes into the picture. This is uh,
Speaker 1: the author of the book hooked and he's basically known
Speaker 1: in Silicon Valley for his work on behavioral design and
Speaker 1: habit forming apps. So he basically spent years setting the
Speaker 1: methods of some of the most popular companies in Silicon Valley.
Speaker 1: UM how they were basically using design to get users
Speaker 1: to come back to their app and so near y'all
Speaker 1: was sitting at a cafe back in twelve, at which
Speaker 1: point he was teaching at Stanford and his work was
Speaker 1: sort of already out um through his blog and through
Speaker 1: news articles, and he was approached by a young man
Speaker 1: who recognized him and said, Hey, we're working on the
Speaker 1: first nice trading app. Uh, can we show it to you?
Speaker 1: And a yell agreed and had a two meetings with
Speaker 1: this young man who turned out to be by you boss,
Speaker 1: and he's obviously the co founder of robin hood UM
Speaker 1: and along with his other co founders lad ten if
Speaker 1: they would lodge Robin hood um a year later. And
Speaker 1: I think what that really signifies is this idea that
Speaker 1: you know, robinhood is different from the other traditional brokerage firms.
Speaker 1: This is a platform that has used these tried and
Speaker 1: tested Silicon Valley methods, UH, this playbook to sort of
Speaker 1: turn an app into a habit where users feel the
Speaker 1: knee to check in constantly and log back on. And
Speaker 1: I think you know, if you take a culture look
Speaker 1: up the design, you can find different aspects of it
Speaker 1: that point to that. Well, that's what let's go. Let's
Speaker 1: pick up on that. Because I loved reading your story
Speaker 1: and I was going through and kind of counting all
Speaker 1: these cool things that they do on the robin Hood
Speaker 1: app and whether it's making it very simple, whether it's
Speaker 1: providing a mystery gift, whether there's a hierarchy of data
Speaker 1: by using different font sizes. You know, these are things
Speaker 1: that you might not think about when you're using it,
Speaker 1: but it definitely influences how you use it and maybe
Speaker 1: how often you might come back to it. Definitely. I mean,
Speaker 1: you know, the successful Silicon Valley apps have basically used
Speaker 1: uh specific things, right, So first of all, you have
Speaker 1: triggers that pull users in, and those exist in the
Speaker 1: form of notifications or emails that pop into your inbox
Speaker 1: or that show up on your homepage on your phone.
Speaker 1: Then you know you have an app that's basically really
Speaker 1: easy to use um and so it makes you know,
Speaker 1: it as easy as possible for the users to do
Speaker 1: what they came in the app to do, and then
Speaker 1: it also involves rewards which sort of build anticipation for
Speaker 1: the users. And on robin Hood, you know a lot
Speaker 1: of people have focused on the animated confetti, which is
Speaker 1: one of the most popular um you know, the facets
Speaker 1: of the app that that you know that robin had
Speaker 1: to remove because it was getting so much scrutiny. But
Speaker 1: you know, if you just look at how long it
Speaker 1: takes to sign up on robin Hood, it's a five
Speaker 1: minute process waite order and waste clicker than any other
Speaker 1: brokerage platform. You know, the first thing that happens once
Speaker 1: you sign um in as a new user is you
Speaker 1: get a sort of scratch off lottery ticket that gives
Speaker 1: you a free stock, and so you know, whether you're
Speaker 1: whether you want to invest or not, it doesn't matter
Speaker 1: because now you have the stock that you can't come
Speaker 1: back to the app to keep checking. And so you know,
Speaker 1: looking at that stock price movement makes you sort of
Speaker 1: more intrigued as it's it's like it's it's an app
Speaker 1: and it wanted as missy as you point out your
Speaker 1: piece and want to design award from Apple It's not
Speaker 1: something typically happens with an investing app. You mentioned the confetti, right.
Speaker 1: Regulators have pushed back on some of these elements of
Speaker 1: the robin Hood app. Talk a little bit about the
Speaker 1: confetti being removed and what robin Hood is doing about that,
Speaker 1: And I wonder too if they're going to start facing
Speaker 1: even more scrutiny for some of these other features, and ultimately,
Speaker 1: in order to get ready for this I p O,
Speaker 1: they're going to have to move away from them. You
Speaker 1: know what, tim they already are. I mean you talked
Speaker 1: about the confetti. That was something that it kept coming
Speaker 1: up as regulators were looking into the company, and so
Speaker 1: the company ultimately decided to go away with it. And
Speaker 1: you know, just last week we saw the Massachusetts Securities
Speaker 1: Watchdogs file a complaint UH in the States seeking to
Speaker 1: revoke robin hood brokerage license and that's a pretty big deal, um.
Speaker 1: And one of the things that they kept calling out
Speaker 1: in that complaint was the A hundred most popular stocks
Speaker 1: lists on the robin Hood apup. And what that is
Speaker 1: is basically a list of stocks that are very popular
Speaker 1: among Robinhood users and that's featured in a very prominent
Speaker 1: placement on the app, and you know what regulators are saying,
Speaker 1: is your brokerage firm, you can't do that because you
Speaker 1: can't recommend stocks to two people. That's not your job.
Speaker 1: And you know what other people are buying may not
Speaker 1: may not necessarily be the right investment decisions for you.
Speaker 1: And so that's something that you know, also caught the
Speaker 1: attention of a lawmakers in d C and something that
Speaker 1: they really honed in on when Lad Tennis was down
Speaker 1: in Washington for that game Stop hearing a couple of
Speaker 1: months ago. And so that is a feature that you know,
Speaker 1: robin Hood is really having to defend. They're saying, it's
Speaker 1: not our commendation, They're just trying to make their app
Speaker 1: more social. And so again we go back to that
Speaker 1: notion that robin Hood is really trying to learn their
Speaker 1: lines between you know, social media and investing, and it's
Speaker 1: it's tricky. So missing I'm curious, having spent a ton
Speaker 1: of time um with uh the robin Hood app the
Speaker 1: early days of the story, you've played with with other apps,
Speaker 1: no doubt, Like, I'm curious, what have you learn about
Speaker 1: robin Hood as you worked on this story. I think
Speaker 1: that what's really interesting when you look at the robin
Speaker 1: Hood app, is you know how much trouble they've gotten
Speaker 1: into for really trying to make this app as easy
Speaker 1: as possible. And they really have, in a very successful way,
Speaker 1: sort of broken the barriers of entry for anyone who's
Speaker 1: ever wanted to invest. And so, ultimately, you know this
Speaker 1: is a good app. There's no denying. I mean, you
Speaker 1: see it on the Apple uh you know store page
Speaker 1: as number one very often, almost weekly, and that rarely
Speaker 1: happens with with finntech companies, but robin Hood is always there,
Speaker 1: and so you know they should they should be sort
Speaker 1: of proud for the design that they have on this app.
Speaker 1: It's really good, it's really unrivaled. It makes it so easy.
Speaker 1: But you know that's definitely not how regulators are are
Speaker 1: you know, embracing this. They think that they're you know,
Speaker 1: they've broken all the barriers when it comes to protecting
Speaker 1: investors by removing all this friction. And I think that asimately,
Speaker 1: you know, being too good can actually maybe come back
Speaker 1: and hurt you and do wonder Listen, a lot of
Speaker 1: companies are out there to create an incredible app, but
Speaker 1: is it get a little bit complicated when you're talking
Speaker 1: about investors, maybe investors who aren't so savvy, and there's
Speaker 1: a lot of money at risk. Jill Weber a Bloomberg
Speaker 1: Business Week, thank you so much, and uh, missy e
Speaker 1: goulf of Polo, she's of course at Bloomberg News. This
Speaker 1: is Bloomberg Business Week with Carol Masser and Bloomberg Quick
Speaker 1: Takes Tim Stinovich from Bloomberg Radio. Tim among our most
Speaker 1: read stories on the Bloomberg Today about how the killing
Speaker 1: of George Floyd focuses US business to really take a
Speaker 1: close look, a deep look at its record on race,
Speaker 1: And someone who follows and reports on this at Bloomberg
Speaker 1: is known none other than our own Jeff Green. Jeff
Speaker 1: Green is managing diversity reporter for Bloomberg News, and he
Speaker 1: joins us now on the phone from Michigan. Hey, Jeff, um,
Speaker 1: how are US businesses doing when it comes to actual
Speaker 1: quantifiable data about what they're doing in order to really
Speaker 1: examine their own record on race and change diversity within uh,
Speaker 1: within their their their corporations. I mean, I think you
Speaker 1: really have to give it a capital TB D. I mean,
Speaker 1: we don't really know. First off, it's only been a
Speaker 1: year it's really hard to show a lot of change
Speaker 1: in that amount of time in terms of you know,
Speaker 1: hiring and issues. Is there's very few people who set
Speaker 1: their targets to be like a one year hiring. We
Speaker 1: know that a lot of companies made at least statements
Speaker 1: and support. There's been a lot of CEO signing letters.
Speaker 1: There's been a lot of talk about adding pay for quotas,
Speaker 1: but not a lot of action on that or pay
Speaker 1: for diversity success. So it's you know, it's it's it
Speaker 1: is one of those things where there's a lot of action,
Speaker 1: a lot of noise, a lot of activity, but you
Speaker 1: really don't know, um, what's going to happen in when
Speaker 1: a lot of these goals are supposed to be realized
Speaker 1: and none of these CEOs are still there, like where
Speaker 1: we'll be. Why is everybody so slow on this, Jeff,
Speaker 1: It's not a new problem. It's been around for years.
Speaker 1: You know this, We all know this. It just really
Speaker 1: kind of smacked us in the face over the last year,
Speaker 1: uh and really made I think people have a come
Speaker 1: to Jesus moment, as they sometimes say, so, why why
Speaker 1: does this take so long? Well, I mean there's two ways,
Speaker 1: you know, two ways to think about this. UM. There's
Speaker 1: the sort of the business in the story. We talked
Speaker 1: to Dr Lomax, who is the president of the United
Speaker 1: New York College Funding and he UM was talking about that,
Speaker 1: you know, every all these companies make eighty. One of
Speaker 1: the companies we looked at said we're gonna do something
Speaker 1: more to recruit from historically black college and universities UM,
Speaker 1: which is great, but they have fifty thousand graduates a
Speaker 1: year graduation rate and everybody wants the Howard and Spellman grads. UM.
Speaker 1: What we really need is for all hundred and one
Speaker 1: historically back college and universities to get fundamental investments so
Speaker 1: that the two hundred and fifty thousand kids going there
Speaker 1: were graduate at a higher rate, and then there will
Speaker 1: be more quality cannon us available to hire from that
Speaker 1: system as well as of you know, more participant in
Speaker 1: the black middle class. I mean, it's it's like, I mean,
Speaker 1: that's the one aspect of it is there's like the
Speaker 1: systemic problem that in this case the corporation probably could address.
Speaker 1: And I got an email today after the story ran
Speaker 1: and I don't think this reader meant to be helpful
Speaker 1: or in any way introspective. But he said, if every
Speaker 1: company in your story had done everything they had said
Speaker 1: they would do with George Floyd not have been killed
Speaker 1: you it's like, you know, he's right. And that's the
Speaker 1: other product of this. There's a there's a broader problem
Speaker 1: in society that CEOs and companies and letter writing campaigns
Speaker 1: and hiring can't fix UM. They can play a role
Speaker 1: in it, but they're they're all there. There's this there's
Speaker 1: issues in society that are also kind of I think
Speaker 1: people get this inflated sense of what a company can
Speaker 1: actually do, and maybe even companies getting inflated sense of
Speaker 1: what they can actually do instead of focusing on UM,
Speaker 1: things like fixing the overall system for historically black college
Speaker 1: and universities, or you know, ensuring that what they're kind
Speaker 1: of going at the basis. I have another example like
Speaker 1: a gives let you ask more questions, okay, So Ken Fraser,
Speaker 1: kenshin Alt, Jenny Remidy started this organization called one ten,
Speaker 1: which I think is one of the most interesting things
Speaker 1: going on out there. The idea is that one million
Speaker 1: new black employees in ten years in jobs that pay
Speaker 1: about fifty dollars equivalent, So in new York that be more.
Speaker 1: But in you know, here in Michigan, in the in
Speaker 1: the Midwest, something like a fifty pay. And the key
Speaker 1: is these have you just have to be jobs for
Speaker 1: people that don't need a four year degree to get
Speaker 1: the jobs, because too many they're saying, you know, if
Speaker 1: you say you have to have a four year degree,
Speaker 1: even if you have the skills without the degree, you're
Speaker 1: shutting out a much larger percentage of the black workforce.
Speaker 1: And so IBM has been doing this already. UM, they're
Speaker 1: challenging more companies to do it. When they started, they
Speaker 1: had thirty seven companies. Last time I talked to them,
Speaker 1: they had thirty nine. They now have forty three. Um,
Speaker 1: as you do the may, there's no way forty three
Speaker 1: companies can produce a million new hires in a decade.
Speaker 1: So but and we asked another company why they hadn't
Speaker 1: signed on, and they, you know, they said they take
Speaker 1: a realistic look at where they can actually do things,
Speaker 1: and apparently that wasn't on the list. And I think
Speaker 1: that is this is a tangible commitment you can make
Speaker 1: to make change. It's hard and you three CEO sign
Speaker 1: a letter, but only forty three companies sign up to
Speaker 1: do something measurable. And that's kind of where I look
Speaker 1: at this is. I think this is hard, It takes
Speaker 1: a long time. And um, if you're and people aren't
Speaker 1: comfortable being held to account. So so Jeff, who who
Speaker 1: are the companies that are doing a good job at this?
Speaker 1: And then what exactly are they doing and what can
Speaker 1: other companies learn from it? And we only have about
Speaker 1: thirty seconds left. Yeah, I mean, I think, you know,
Speaker 1: some of what IBM has been doing is interesting in
Speaker 1: terms of at this end, you know, broader hiring, broad
Speaker 1: broadening the aperture. And um, I don't know. I mean,
Speaker 1: I think any of the companies that are in one
Speaker 1: ten um, I think are at least approaching it from
Speaker 1: a unique new angle right. And it does sound like
Speaker 1: you need to have some way of people have to
Speaker 1: walk the talk, they have to honor their commitments, but
Speaker 1: you have to be able to measure it. You can
Speaker 1: hold people accountable. Ultimately, we have companies show us your
Speaker 1: workforce as you presented to the federal government so far
Speaker 1: thirty seven and said yes, all right, but by the
Speaker 1: end of the year seventy one. So that's progress. That
Speaker 1: is progress, and I know you're tracking it all. Hey, Jeff,
Speaker 1: so good to hear from you. He is Bloomberg News
Speaker 1: Managing Diversity reporter Jeff Green with us on the phone
Speaker 1: in Chicago. You're listening to Bloomberg Radio. I'm rom a
Speaker 1: journal now. But you let me drive. Oh no, no, no, no, please,
Speaker 1: I'll let me. I want to drive all Just drive, baby,
Speaker 1: it's the question. This is the drive to the globe. Thanks.
Speaker 1: We'll drying us to dawn on Bloomberg Radio. Right just
Speaker 1: about ten minutes left in today's trading session, getting ready
Speaker 1: to wrap up the Wednesday trade. We're pretty much hovering
Speaker 1: at our highs of the session, Charlie, just breaking down
Speaker 1: the trade for you on this Wednesday. Let's get to
Speaker 1: Ryan D. Trick. He his chief market strategist LPL Financial.
Speaker 1: He joins us on the phone once again from Charlotte,
Speaker 1: North Carolina. Ryan, good to have you back with Tim
Speaker 1: and myself. So we had two down days. I think
Speaker 1: people were wondering, Okay, what's going to happen? Are we
Speaker 1: worried about earnings? Are we worried about another wave in
Speaker 1: the virus at least globally? And then today here we are.
Speaker 1: We see a bit of a rally, and people are
Speaker 1: seeming to buy into the economic recovery trade. And as
Speaker 1: a matter of fact, as I look at the trade here,
Speaker 1: we're seeing some buying into the clothes because we're just
Speaker 1: took another tick higher. Oh you're right, Carol, thanks for
Speaker 1: having me back first off, But we have the two
Speaker 1: days sell off and just like that the buyers are
Speaker 1: coming in. I mean, at the same time, I don't
Speaker 1: think we sold off the last two day because people
Speaker 1: are worried about earnings or the economy. We know those
Speaker 1: things are really strong, and the economy continues open up.
Speaker 1: You know, one thing you even talk about what kind
Speaker 1: of worries us a little bit here. Everyone knows the
Speaker 1: economy is getting better. Everyone knows earnings are strong. You know,
Speaker 1: some of the recent Cinnamon polls are showing the most
Speaker 1: most balls we've seen honestly since January. But the call
Speaker 1: ratios are getting pretty low. That's not the end of
Speaker 1: the world for a while, saying things are probably gonna
Speaker 1: go higher, but near term, everyone agrees things look good,
Speaker 1: so that can train and us wonders couldn't finally be
Speaker 1: time to have a little at least consolidation as we
Speaker 1: enter the troublesome selling may go away period, the worst
Speaker 1: six months of the year right around the corner here.
Speaker 1: So what what actually worries you though? I mean, is
Speaker 1: it just a part of the calendar that's worrying you?
Speaker 1: I mean, what, what technically are you seeing that has
Speaker 1: you concerned? Yeah? Tim, I mean, let's be very clear.
Speaker 1: You know, we're we're not extremely worried. I'm just saying
Speaker 1: there are some cautionaries things coming up, and that'sence, you know,
Speaker 1: sentiment is getting a little over the top, little too optimistic.
Speaker 1: You mentioned the calendar. You know, if you overlay the
Speaker 1: bull market that we've had since March of last year
Speaker 1: with you know, approximately eight percent gain, and you overlay
Speaker 1: that with the bull market that started in two thousand
Speaker 1: nine two thousand ten, they're nearly identical. It's really amazing.
Speaker 1: But you know what happened in two thousand ten right
Speaker 1: about now, the market peaked and you had almost a
Speaker 1: sixteen percent correction into the summer months of twenties of
Speaker 1: two thousand ten. Now we're not saying that's going to
Speaker 1: happen exactly like that again, but we are saying, after
Speaker 1: over rally, things look really good. Let's not get too
Speaker 1: spoiled here. But again, another thing that gets this is
Speaker 1: under the surface. You know, NASDAC hasn't made a new
Speaker 1: high yet, right, it hasn't made new new highs. Small
Speaker 1: caps been underperforming some of the more defensive areas all
Speaker 1: of a sudden the last week or two have started
Speaker 1: to lead these just little cracks in the armor, but
Speaker 1: things we want to be very clear that maybe, um,
Speaker 1: you know, people should be open to more of a
Speaker 1: sideways consolidation are out right kind of weakness here. What
Speaker 1: does it mean to you that the NASA has not
Speaker 1: made a new high? Yeah, Carol, great question. I mean,
Speaker 1: that's that's uh, one of those chinks in the armor. Right,
Speaker 1: you don't have total market bread everything participating, and that's
Speaker 1: that's normal, you know. But again when we see that
Speaker 1: were coupled with things like utilities and staples, um, starting
Speaker 1: to all of us in real estate starting to take
Speaker 1: a little bit of leadership that with the NASDAC not
Speaker 1: making a new high, or what we call kind of
Speaker 1: technical warnings, I guess you could say, and that's kind
Speaker 1: of what we're seeing now. Honestly, you look today, we're
Speaker 1: bouncing back nicely today, but still it. Those are some
Speaker 1: of the things that have definitely caught our attention. Um,
Speaker 1: even though the headlines are pretty optimistic, Um, what are
Speaker 1: you looking for when it comes to earnings? What I know,
Speaker 1: I know you're following technicals here, but are there big
Speaker 1: themes that you're looking at for earnings? Well, Tim, yeah,
Speaker 1: I mean we wrote about earnings in our weekly market
Speaker 1: commentary earlier this week or two weeks ago, I'm sorry
Speaker 1: two weeks ago, and we said then said we expected
Speaker 1: earnings to be up about thirty percent year over year
Speaker 1: in the first quarter. Expected at the times, we have
Speaker 1: now over eight companies of beat earnings and people think, okay, gee,
Speaker 1: maybe earnings will be ab over thirty percent in the
Speaker 1: first quarter, so we think it's gonna be positive. But
Speaker 1: the thing that gets us you look at earnings, Um,
Speaker 1: you know, financials and banks started things off really really
Speaker 1: strongly obviously last week. Yet banks are flat last week
Speaker 1: and then I know they're bouncing back today but pretty weak.
Speaker 1: So there's a little bit of a maybe sell the
Speaker 1: news mentality, and we saw that a financials honestly last quarter,
Speaker 1: really strong earnings kind of sell the news, and then
Speaker 1: eventually they resolved higher, and we think that could play
Speaker 1: out once again here Ryan, going back though to your
Speaker 1: comment about the bull market that we're seeing magic up
Speaker 1: nicely with the oh nine, two thousand ten bull market,
Speaker 1: I do feel like they were very different market environments. No,
Speaker 1: oh no, well, there's no doubt they were different. I
Speaker 1: mean it's absolutely I mean, technically you can look at
Speaker 1: moves and say, okay, it's very similar. But I do
Speaker 1: also think you have to take into account fundamentally what's
Speaker 1: going on. Yeah, you're right, I mean the fundamentals look good,
Speaker 1: but I mean from just the technicals. Right, we we
Speaker 1: had almost a seventy rally in a year. Right, that
Speaker 1: is like the greatest rally we've ever seen in a wall.
Speaker 1: But that's because we dropped like a rock, right, So,
Speaker 1: I mean we knew clearly what the problem was. I mean,
Speaker 1: our economy shut down. As soon as we figured out
Speaker 1: how we could start to either you know, provide some
Speaker 1: support and then now start to open it up. We
Speaker 1: understand the bat I mean it's very logical. No, it is.
Speaker 1: I mean, you know, the thirty percent correction, fastest bear
Speaker 1: market ever, although at the same time you know that
Speaker 1: rubber band is stretched pretty far. I mean, you know,
Speaker 1: so we're we're just being a little cautious there. But
Speaker 1: let's not forget this is year two, right, Year two
Speaker 1: of the bull market officially started on Marche Um. You
Speaker 1: know from we know that the lows back in two
Speaker 1: thousand and and twenty a year later. But year twosable markets, Carol,
Speaker 1: they've been higher every single time since World War two.
Speaker 1: So we're not ignoring. We're just saying there some more
Speaker 1: some signs, but any pulled back at all, we would
Speaker 1: use the opportunity because this is still a young bull market,
Speaker 1: a young economic records for a new bowl market or
Speaker 1: just a continuation. We just had a brief. It was
Speaker 1: a big pause, like a big major hiccup and blips. Yeah,
Speaker 1: I mean we do think, yeah, we do. I guess
Speaker 1: a major secular bowl market that was likely born in
Speaker 1: when we broke out the new highs. But again, I
Speaker 1: guess if you know, if any remembers what happened back
Speaker 1: in March, it's sure felt like, you know, there are
Speaker 1: a lot of people that sold, a lot of people
Speaker 1: that got out, So it's there's some good arguments either way,
Speaker 1: but we're still saying it's a yell in this way,
Speaker 1: it's a young economic recovery in our view because technically
Speaker 1: the NBRE still says we're in a recession. No one
Speaker 1: believes that, but technically we still are. And we think,
Speaker 1: you know, this new expansion is is alive and well
Speaker 1: and stocks will eventually resolve higher as they tend to
Speaker 1: do year two. It's just a little more rocky and
Speaker 1: a little more troublesome historically that kind of plays out.
Speaker 1: We see it that way. Okay, So what concerns you? Yeah, well, again,
Speaker 1: just to put a bow on it, I mean the
Speaker 1: overall economic um oh, I'm sorry, the overall sentiment backdrop
Speaker 1: is a little concerning again season that seasonally we do know,
Speaker 1: you know, the summer months historically can be troublesome. So
Speaker 1: that's out there. And then you know, the feed is
Speaker 1: said they're doing everything they can to keep things going.
Speaker 1: So could there be a policy mistake. Could the FET
Speaker 1: eventually be behind the eight ball? Not our base case,
Speaker 1: but you know, if inflation starts to creep up, and
Speaker 1: what small company small businesses and a survey and Wall
Speaker 1: Street Journal just said that they are having trouble with
Speaker 1: supplies right everyth it's hard to get stuff all of
Speaker 1: a sudden, So it could there be more inflation in
Speaker 1: the fed? Uh is willing to accept that. Could they
Speaker 1: be behind the eight ball is something that again not
Speaker 1: our base case, but something that we're watching out for. Hey,
Speaker 1: just quickly your thoughts on the Philadelphia Semiconductor Index or
Speaker 1: the SEMIS overall. It's up fourteen so far this year.
Speaker 1: SML coming out in Europe overnight and we got some
Speaker 1: very optimistic news from them. We saw the chip sector
Speaker 1: really helping out the market trade. We're gonna get LAMB
Speaker 1: research after the close. Technically, how how did the SEMIS
Speaker 1: look right now? The simeis are probably one of our
Speaker 1: favorite groups in technology overall. Um, you mentioned Simmis though
Speaker 1: that they're kind of like the NAZAC where they haven't
Speaker 1: quite been able to break back out the new highs
Speaker 1: where they were recently and they've been struggling over the
Speaker 1: last week or so relatively, But overall, we think there's
Speaker 1: still strong earning, strong fundamentals, and some decent momentum there.
Speaker 1: So Simmy's are such an influential group on the technology.
Speaker 1: Is that because of the shortage Just quickly that you
Speaker 1: like it in big part of it that's part of it. Yeah,
Speaker 1: that's definitely part of it. There's the shortage there and
Speaker 1: demand is awfully, awfully strong, so it's a supply demand
Speaker 1: story as well. Absolutely all right, we're gonna leave it
Speaker 1: on that note. Hey, Ryan, thank you so much, Really
Speaker 1: appreciate you walking through the final few minutes of trading here.
Speaker 1: Ryan Dietrich, chief market strategist at LPL Financial, with us
Speaker 1: on the phone from Charlotte, North Carolina. Thanks for listening
Speaker 1: to Bloomberg Business Week. Download the podcast on iTunes, SoundCloud,
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