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, plus 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 more than a hundred
Speaker 1: and twenty countries and Jason. You can download Bloomberg Business
Speaker 1: Week on iTunes, SoundCloud, old Bloomberg dot com. You can
Speaker 1: also listen to our radio show at two pm Eastern
Speaker 1: on Bloomberg Radio every weekday, or watch us on YouTube
Speaker 1: by searching Bloomberg Global News. Let's get into some analysis
Speaker 1: of what we heard, Carol, because we've got the team assembled.
Speaker 1: They've been waiting patiently, uh to walk us through this.
Speaker 1: It was an interesting hearing and listen. These are the
Speaker 1: guys who are on the front lines. Paula Manucha, Well,
Speaker 1: I feel like over the last sixteen weeks fifteen sixteen weeks,
Speaker 1: these are the two individuals that have really been at
Speaker 1: the forefront when it comes to programs to take care
Speaker 1: of businesses large and small, all as well as individuals
Speaker 1: in the US economy. So let's get into it. Joining
Speaker 1: us right now is, of course, our Michael McKey, Bloomberg
Speaker 1: News International Economics and Policy correspondent Mike McKee joining us
Speaker 1: from our studios in New York. Also Jeffrey Cleveland, chief
Speaker 1: economist at Payton and Regal. He's on the phone from
Speaker 1: Los Angeles, and Mike, let me start with you. Anything
Speaker 1: that really jumps out. I know we've been hearing, certainly
Speaker 1: from J. Powell a lot over the last few weeks,
Speaker 1: but anything in particular that stood out for you. Nothing,
Speaker 1: a lot of market moving. I was a little surprised
Speaker 1: that there wasn't more criticism of some of the mistakes
Speaker 1: that were made during the funding of various programs. UH.
Speaker 1: The Government Accountability Office last week with rather scathing report
Speaker 1: about that. If anything, it might have been the idea
Speaker 1: um the J. Powell suggested they might be willing to
Speaker 1: lower the threshold for main street loans. There doesn't seem
Speaker 1: to be a lot of interest in that at the moment,
Speaker 1: he said. Three D banks have signed up, but they're
Speaker 1: not getting a lot of company interested in that. And
Speaker 1: there was some concern that it was going to be
Speaker 1: a little too late. Also, Steve Manuchan said that they
Speaker 1: were willing to consider some sort of program for commercial
Speaker 1: mortgage back to securities. Uh so if if they do
Speaker 1: those two things that expands the lending programs, maybe they
Speaker 1: get more money out Pole of course declining to get
Speaker 1: involved in saying what kind of stimulus they should do,
Speaker 1: but both men making the case they probably do need
Speaker 1: to do more stimulus. So Jeffrey Cleveland, come on in here,
Speaker 1: chief economists for Pitton and Regal out in Los Angeles. Uh,
Speaker 1: what does the Fed and what does the Treasury need
Speaker 1: to be doing at this moment, especially as listen you
Speaker 1: are at unfortunately what many are considering the new epicenter
Speaker 1: of this in in Los Angeles, with this outbreak or
Speaker 1: this surge or resurgence, depending on your perspective, that we're
Speaker 1: hearing what needs to be done from a fiscal and
Speaker 1: monetary perspective. Yeah, Jason, I thought the best exchange was
Speaker 1: between David Scott Georgia and uh the Secretary Treasury in
Speaker 1: the in the FED chair, And you know, he really
Speaker 1: highlighted something that clients are asking me, you know every day,
Speaker 1: are you know what's been done? Is it helping main
Speaker 1: Street or is it helping Wall Street? And I think
Speaker 1: Powell answered that very well. He said, what they're doing
Speaker 1: will help the main street, it will help the economy
Speaker 1: by keeping the markets open, you know, by keeping access
Speaker 1: to capital available, by keeping financial conditions easy. That should
Speaker 1: help main Street help the economy as as things reopen.
Speaker 1: So I thought that that was a good exchange, but
Speaker 1: I think it highlights the problem that most people have
Speaker 1: right now. We have twenty five million unemployed, yet we're
Speaker 1: recording the best quarter for the stock market since and
Speaker 1: so you know, meeting that is difficult. I think you know,
Speaker 1: if you've watched that whole hearing, you it's the infrastructure, right,
Speaker 1: how do you get capital to where it is needed
Speaker 1: most in a timely fashion? There there is no see
Speaker 1: way to do that, as the Treasury Secretary said, they're
Speaker 1: using the banking system. So the main street lending facility
Speaker 1: is uh, you know, the obvious candidate. But it's taken
Speaker 1: a while to get that ramped up. And as of
Speaker 1: the FENS balance as of Wednesday, there was about thirty
Speaker 1: seven billion there, so not a huge uptake. So that's
Speaker 1: that's a difficult process. But keeping financial conditions easy, is
Speaker 1: a short answer to your question. Yeah, and they certainly
Speaker 1: have been doing a great job at that. Mike McKie,
Speaker 1: it's an interesting week. It's a holiday week, but there's
Speaker 1: a job you know, there's tons of economic news culminating
Speaker 1: in that Thursday jobs report, and of course we'll get
Speaker 1: fed minutes tomorrow. So I don't know what, if anything,
Speaker 1: is really of utmost importance in your in your view,
Speaker 1: you know, it would have probably been the job's report,
Speaker 1: because we had a good jobs report last month and
Speaker 1: then everybody got excited that maybe we were getting uh
Speaker 1: to the rebound a little bit quicker. And j Pal
Speaker 1: said today he thought we had gotten to the rebound
Speaker 1: a little bit quicker than they had anticipated. But now
Speaker 1: with this all these emerging hotspots, you've gotta wonder, as
Speaker 1: governors moved to shut various industries down, they're not doing
Speaker 1: a wholesale shutdown, but as bars close again, Um, you
Speaker 1: wonder all the people who are on the June pay
Speaker 1: rolls report, which we get on Thursday, how many of
Speaker 1: them will be on the July payrolls report. So this
Speaker 1: is just gonna move everybody's interest forward a month to
Speaker 1: see and because this has come back so strong in
Speaker 1: different places. It kind of makes all the data seem outdated.
Speaker 1: At this point, everything we're gonna get this week isn't
Speaker 1: really going to tell us necessarily where we are because
Speaker 1: most of it's old, and it doesn't really tell us
Speaker 1: where we're going because we don't know how long it's
Speaker 1: gonna last. And so, Jeffrey Cleveland, what is the one
Speaker 1: either data point that we'll get this week or looking
Speaker 1: ahead that you're most interested in seeing and analyzing. We've
Speaker 1: been highlighting continuing claims out on Thursday. You're being being
Speaker 1: the thing to watch every week. It's more timely than
Speaker 1: the Job's reports. I hate to dismiss the Job's report.
Speaker 1: It's always been my favorite economic data player. I feel
Speaker 1: bad doing that, but yeah, the continuing claims date I
Speaker 1: think is key. UM hit more in a real time since.
Speaker 1: But you know there's great uncertainty. I think you know
Speaker 1: there's been some good work here. It's not just the
Speaker 1: shutdowns that are being put in place. You mentioned Los Angeles. Uh,
Speaker 1: we're being told we can't go to the beach on
Speaker 1: the fourth of July. But it's really the fear of
Speaker 1: the virus that did the economic damage there's a good
Speaker 1: working paper out today from from University of Chicago highlighting this.
Speaker 1: You had a big drop off in consumer activity, but
Speaker 1: only about seven percent of that has accounted for by
Speaker 1: the quote unquote legal restrictions. Most of it is just
Speaker 1: people staying home because they're afraid. So the question is,
Speaker 1: as we see the virus count take up yesterday, l
Speaker 1: A County recorded the highest daily increase so far. You know,
Speaker 1: does that cause people to shut down again and then
Speaker 1: do we have a second round of economic effects. It's
Speaker 1: a really good question. Yeah, I agree with you, Michael McKee.
Speaker 1: Just to wrap up, so what is it? Is it
Speaker 1: a V shape? Is it a U shape? Is it
Speaker 1: an upside down Nike swush? Have we decided what the
Speaker 1: recovery looks like? We haven't really decided. Um. The working
Speaker 1: assumption to most people was a sort of a square
Speaker 1: root sign where are you you? You had a quick
Speaker 1: V and then just a flat But now we don't know.
Speaker 1: We could be heading into a W situation. I think
Speaker 1: the takeaway from today is the same as it's always been.
Speaker 1: The viruses in charge. Yeah, well, stay tuned to everyone
Speaker 1: and we'll figure out what that symbol will ultimately be
Speaker 1: right when it comes to this recovery. Yeah, and who knows.
Speaker 1: It feels like we have a different answer every day.
Speaker 1: That's the world we're living in, all right, gentlemen, Thank
Speaker 1: you so much. Jeffrey Cleveland, chief economists for Payton and Regal,
Speaker 1: joining us on the phone from Los Angeles. And are
Speaker 1: in Michael McKee, international economics and policy correspondent for Bloomberg.
Speaker 1: There in our Bloomberg Interactor Brooker Studio. This is Bloomberg
Speaker 1: Business Week with Carol Masser and Jason Kelly on Bloomberg Radio.
Speaker 1: Hard pivot here, no segway here from Capitol Hill. Uh,
Speaker 1: to the heist issue, which is one of our favorite
Speaker 1: things every year. We're gonna be talking about it over
Speaker 1: the next couple of days. But we have to diget
Speaker 1: into a story that did phenomenally well on the Bloomberg yesterday.
Speaker 1: Claire Saidith wrote it. She is a writer for Bloomberg
Speaker 1: Business Week. Of course, durants on the phone from Brooklyn.
Speaker 1: The case of the empty Frames remains art world's biggest mystery.
Speaker 1: If that doesn't draw you in, I don't know what does, Claire.
Speaker 1: It's so phenomenal. Tell us what's going on this is
Speaker 1: the hest of all heyst in some ways, Yeah, it is.
Speaker 1: And it's also so it's um it's thirty years old.
Speaker 1: In St. Patrick's day, Um, two men dressed up as
Speaker 1: Boston police officers and stole um what has been estimated
Speaker 1: to be about half a billion dollars in artwork, and
Speaker 1: it has never been solved. So it's the largest art y.
Speaker 1: Also makes it the most famous art hysmin history. It's
Speaker 1: been the subject of books and podcasts. Um, there's this
Speaker 1: whole Simpsons episode, or Mr Burne goes to prison because
Speaker 1: it turns out he stole the painting. It's it's same us.
Speaker 1: And I don't want to say that I know the
Speaker 1: answer to it, because what makes it so famous is
Speaker 1: the fact that it's never been solved. And there's this
Speaker 1: whole cottage industry of FBI agents and private detectives and
Speaker 1: armchair sluice who have been trying and failing so far
Speaker 1: to come up with um an answer. And it's funny
Speaker 1: because they all have wildly different theories and they all
Speaker 1: disagree with each other. I mean, it's really it just
Speaker 1: reads you know, as you said, you know, we often, Jason,
Speaker 1: I talked about Claire. You know, things that could be
Speaker 1: adapted as a series. I mean it just so reads
Speaker 1: like a George Clooney movie or something, right, yeah, exactly,
Speaker 1: and each episode would be one of the different theories
Speaker 1: I guess you could do. Um. Yeah, it's UM, it's interesting.
Speaker 1: You know. The FBI, it technically has been working on
Speaker 1: this for a really long time, and they've had different
Speaker 1: agents in charge at different points in the three decades.
Speaker 1: For a while they thought it was in France, there
Speaker 1: was the sting in Miami. Um really early on they
Speaker 1: went to Japan that turned out to definitely not be true. UM.
Speaker 1: And now their current theory is that, um, they think
Speaker 1: the paintings were stolen by some sort of um cabal
Speaker 1: of in Boston's organized crime and UM, they've tracked it
Speaker 1: up to a certain point in the early two thousand's
Speaker 1: and then they sort of just UM, I don't know
Speaker 1: what happened after that. What was the security? I mean,
Speaker 1: this is an army museum, right there was there Well,
Speaker 1: I will say this is while it had an extensive
Speaker 1: art collection, it's it's a small museum. It's private. Um.
Speaker 1: And in the nineties UM, and also the case in
Speaker 1: many museums, especially back then they didn't really have a
Speaker 1: lot of security, so they had motion detectors and they
Speaker 1: had a few security cameras, but not in the galleries.
Speaker 1: And actually the overnight shift, um, which is this happened
Speaker 1: at night. There are two guys in their mid twenties
Speaker 1: who had no real security training whatsoever. Um. One of
Speaker 1: them was a music school student and he liked to
Speaker 1: play his trombone at night, and the other one, UM
Speaker 1: played in a rock band. And in other interviews he
Speaker 1: had said he, you know, sometimes may not have come
Speaker 1: to work totally sober, just because you know, he's working
Speaker 1: the night shift at a small museum, so why not. Um,
Speaker 1: But that didn't work out so well for them that
Speaker 1: one night. Yeah. Well, I love all the twists and turns,
Speaker 1: and you know, as you read through the story, you've
Speaker 1: got all these sort of theories popping up, and you know,
Speaker 1: you have it's like, oh, it took place on St.
Speaker 1: Patrick's Day and what does that mean? And then a
Speaker 1: couple of the robbers refer to each other as mate,
Speaker 1: so they're clearly not American. I mean, all these different
Speaker 1: things in Whitey Bulger, of course, the famous criminal makes
Speaker 1: it came out. I mean it's really it's religious. It's
Speaker 1: really just it's so good. Alright, alright, Clara saida thank
Speaker 1: you so much. Congrats on the story, one of the
Speaker 1: most read. It is a feature story in the Heist issue,
Speaker 1: an annual uh sort of romp that This is weeked.
Speaker 1: This is Bloomberg Business Week with Carol Masser and Jason
Speaker 1: Kelly on Bloomberg Radio. Just bring up just being on
Speaker 1: some of the things that are going on, you know,
Speaker 1: looking at the most read stories. Anthony Fauci at the
Speaker 1: top of the leaderboard here in terms of what he
Speaker 1: is saying, around as many as a hundred thousand new
Speaker 1: cases per day, if there's no change in terms of
Speaker 1: how we as people and governments and and everyone else
Speaker 1: are fighting the virus right on a day when global
Speaker 1: deaths succeed five hundred thousand in cases top ten millions,
Speaker 1: so crucial as we know to containing our slowing the
Speaker 1: spread of the virus. Jason, it's it's about protecting the
Speaker 1: most vulnerable, which we no means of course, our older population.
Speaker 1: So let's get into it because we know our next
Speaker 1: guest has some thoughts on it. Dr Near Barzilai. He
Speaker 1: is the director of the Institute for Aging Research at
Speaker 1: the Albert Einstein College of Medicine. He's also director of
Speaker 1: the Paul left Glen Center for the Biology of Human
Speaker 1: Aging Research and of the National Institutes of Health Centers
Speaker 1: of Excellence in the Basic Biology of Aging. So when
Speaker 1: it comes to aging, this is the guy who's joining
Speaker 1: us on the phone in Westchester, New York. Dr bars Ali,
Speaker 1: are nice to have you here on Bloomberg Radio. Um
Speaker 1: talk to us about the importance of understanding the most
Speaker 1: vulnerable populations, including those who are elderly, in terms of
Speaker 1: really getting a handle on this virus. Alright, so not
Speaker 1: nice being with you. And I want to start with
Speaker 1: a misconception, and that is that there's nothing you can
Speaker 1: do about aging. I think we're confusing by the fact
Speaker 1: that we all end up dying. But that's not the
Speaker 1: same as we cannot do anything about aging. In fact,
Speaker 1: aging has the biology. You know, you can see, you
Speaker 1: can see who's old and who's young. But the more
Speaker 1: important thing is this biology can be targeted. And we
Speaker 1: and when I'm saying we, gero science is gero science
Speaker 1: is kind of a and you the study of all
Speaker 1: these new but we've made huge progress. We went to
Speaker 1: from hope to promise, and we know that aging can
Speaker 1: be targeted by different ways. And I think the COVID
Speaker 1: nineteen just underline how vulnerable are the elderly, but also
Speaker 1: maybe gave hope that we can actually intervene and defend
Speaker 1: the elderly host And so what have we learned, Dr
Speaker 1: Barzilai about you know what we can do? You know,
Speaker 1: taking into account everything that you just said when it
Speaker 1: comes to COVID nineteen, how should we be thinking, especially about,
Speaker 1: as Carol said, this more vulnerable population and given given
Speaker 1: a lot of scary things that that we're seeing out there,
Speaker 1: So you know, I would I would mention as briefly
Speaker 1: as I can two things that are interaction with with
Speaker 1: the environment. That is exercise and nutrition. Right, those are
Speaker 1: things that we know that is going to affect agent.
Speaker 1: It's kind of tough, but it's not really tough for
Speaker 1: people who haven't walked before to start walking, or two
Speaker 1: people to exercise regularly in the and do it safely.
Speaker 1: With the nutrition. I have a specific suggestion that will
Speaker 1: affect more people than many other diets that I can
Speaker 1: tell you, and this is to start doing intermittent fasting,
Speaker 1: which really means just keepping breakfast. We call it sixteen eight.
Speaker 1: You could do fifty nine if you want, but you know,
Speaker 1: sixteen eight is if you finish dinner at eight, don't
Speaker 1: eat anything until twelve the next day. That's sixteen hours
Speaker 1: and you can do it because even if you're hungry,
Speaker 1: there's only two hours to go and then you can
Speaker 1: whatever you want. And with this diet you lose weight also,
Speaker 1: but more important, this is something that upregulate your defense.
Speaker 1: That's important for aging. Can I ask you, but Dr Barsla,
Speaker 1: I want to ask you something. A lot of elderly
Speaker 1: folks have something like diabetes where they have to be
Speaker 1: very careful about, you know, when they eat and how
Speaker 1: they eat in terms of maintaining their levels. So how
Speaker 1: does someone like that, we're losing weight can improve their health,
Speaker 1: but yet they're stuck on something like that. Yeah, well,
Speaker 1: I'm actually a diabetology so and and and so. Look,
Speaker 1: one of the things that we want people to do
Speaker 1: is lose weight are diabetics, and unfortunately only three percent
Speaker 1: of them will do this. Okay, So the advice and
Speaker 1: the method is good when it comes to treatment, you know,
Speaker 1: and I don't want to spend too much time of it,
Speaker 1: but it's very adjustable. You know, if you're an insulin
Speaker 1: and you're fasting, then the instutin you should get with
Speaker 1: the meals and not with the fath basically, so there's
Speaker 1: a way to do it. But I'm not talking about
Speaker 1: diabetic people now. I'm just talking about if you're you know,
Speaker 1: if you if you're now want to avoid COVID, exercise
Speaker 1: and nutrition or weight loss or or maybe intermittent fasting
Speaker 1: is the way that you can. It does few things.
Speaker 1: It increased your immunity, it decreased your inflammation, and it's
Speaker 1: increased the ability of your body to sustain a very
Speaker 1: severe disease. Okay, so those all are are good advice
Speaker 1: if you can do it. But I really wanted to
Speaker 1: talk about other things. You know, for us, aging has
Speaker 1: eight hallmarks that we agree upon, and the hallmarks are
Speaker 1: really knobs that we can target with drugs that could
Speaker 1: have a major effect on aging. And I want to
Speaker 1: take talk about one of those drugs because this drug
Speaker 1: is readily, readily available and very cheap. Unfortunately, you have
Speaker 1: to tell us about it in thirty seconds because we're
Speaker 1: going to write at a time. Dr Barsla I said,
Speaker 1: just okay. It's it's called mitforming. It's a drug that's
Speaker 1: given to diabetic patients and from studies with COVID nineteen,
Speaker 1: we know that people on mitforming have four times less
Speaker 1: mortality and their hospitalized less. So what I'm saying, there
Speaker 1: are other options where we have to defend the host
Speaker 1: besides fighting the virus. Al Right, well we will, uh
Speaker 1: come Yeah, You'll have to come back and spend more
Speaker 1: time with this because I feel like you are working
Speaker 1: in a number of areas that are certainly very interesting
Speaker 1: to us, in very critical to everything that's going on
Speaker 1: in the world. Dr near bars Lai is the founder
Speaker 1: of the Institute for Aging Research at the Albert Einstein
Speaker 1: College Medicine, among many other things. Uh glad to have
Speaker 1: him with us. This is Bloomberg Business Week with Carol
Speaker 1: Masser and Jason Kelly on Bloomberg Radio Now. In this
Speaker 1: week's edition of Business Week Small Business Survival Guide, we
Speaker 1: continue to look at how small businesses are reopening in
Speaker 1: a week, where as Jason I just talked about some
Speaker 1: states you know, are being very cautious or rolling back plans.
Speaker 1: Joining us once again, as Bloomberg News editor Dimitri Cassa Needy.
Speaker 1: She's on the phone in New York City joining us.
Speaker 1: Also is Abigail Shape and she's owner of Abigail Rose
Speaker 1: and Lily Too. It's a woman and children's clothing store
Speaker 1: that's located in Piermont, New York. She joins us on
Speaker 1: the phone from Piermont. Nice to have you both with
Speaker 1: with us, dimitra Um. We want to get into abigail story.
Speaker 1: But you guys continue to take a look at what's
Speaker 1: going on in small businesses. What's the overlying trend here?
Speaker 1: Do you feel like they're finding it easier or is
Speaker 1: it continuing to be pretty difficult. I think I would
Speaker 1: say I think there are still challenges. It's not you know,
Speaker 1: it's not something where there was a solution um away
Speaker 1: forward and you can just stick with that and not
Speaker 1: have to adjust. I think it's a constant. My sense
Speaker 1: from many business owners, not just Abigail who will be
Speaker 1: talking to in a minute, is that there's a constant reassessment. Um,
Speaker 1: we're not seeing you know the problems that are happening
Speaker 1: in some other states right now, and yet that does
Speaker 1: you know, it would be smart for everybody to kind
Speaker 1: of look at those things pay attention to them, give
Speaker 1: them pause and think about what the plans are going
Speaker 1: to be. If at any given moment you again have
Speaker 1: to reassess and move in another direction because of how
Speaker 1: things are going. And so Abigail, help us understand what
Speaker 1: it does look like from your perspective. And I have
Speaker 1: to say, I'm sort of virtually waving to you. I'm
Speaker 1: just across the just across the Mario Cuomo Memorial Bridge
Speaker 1: otherwise known as the Tapancy Bridge formally and Sleepy Hollow.
Speaker 1: So what are you think over there in Pyrmont. Um. Well,
Speaker 1: we are seeing that people I think as people are
Speaker 1: not going on vacation, maybe as much not traveling. So
Speaker 1: people from the Chi state area are coming to Piermont
Speaker 1: a lot um on the weekends or as a day visitor. UM.
Speaker 1: But a lot of the stores and UM ourselves included,
Speaker 1: are taking it slow to reopen. Um. We are at
Speaker 1: a village with a lot of restaurants, a lot of
Speaker 1: really great restaurants, and the restaurants are open with outdoor seating. UM.
Speaker 1: But UM, so that that's keeping our town really active
Speaker 1: and people are coming to visit for that. UM. But yeah,
Speaker 1: we have a few stores in town that haven't opened
Speaker 1: at all, and we are kind of in an in
Speaker 1: between phase ourselves. How hard has it been, Abigail, Well, UM,
Speaker 1: we're really lucky. We've been UM the store with my
Speaker 1: mom's she started it's named for me and my sister,
Speaker 1: UM and she started at night, and UM it's been
Speaker 1: in Piermont this whole time. UM. We've been through some
Speaker 1: major disasters like Hurricane Sandy and other disasters that hit
Speaker 1: Piermont really hard. UM this is obviously a worldwide UH disaster.
Speaker 1: But UM, our loyal clientele has really stuck with us
Speaker 1: and they've been UH. We've we shifted everything online and
Speaker 1: UM and took herbside and originally in March we were
Speaker 1: doing sort of local delivery and that was keeping us UM,
Speaker 1: keeping us afloat, and people were super supportive, and our
Speaker 1: loyal clientele, I think, really wanted to support businesses that
Speaker 1: were important to them. So UM, we're really extremely lucky
Speaker 1: for that. UM. But it has been definitely challenging. There's
Speaker 1: so much pivoting that is taking place all the time,
Speaker 1: like reassessing what's important to us. We're also UM sheltering
Speaker 1: and us sort of pollowed with our parents who are
Speaker 1: in their seventies, and my sister and I both have
Speaker 1: four year old daughters, so we've got little ones and
Speaker 1: older people to think about. UM, So we don't feel
Speaker 1: comfortable just letting the world in our door. UM when
Speaker 1: as the meat who was saying, there's you know, the
Speaker 1: virus is still kind of on the loose. Yeah. I
Speaker 1: mean that's such an interesting point too, because you know,
Speaker 1: you have to think about yourselves and and your employees
Speaker 1: as well, because you know everybody is you know, either
Speaker 1: going home to or you know, even with social distancing
Speaker 1: and all that, you know, interacting with people who who
Speaker 1: could be vulnerable. And I would imagine that that weighs
Speaker 1: heavily on you. It definitely does. And UM, even though
Speaker 1: so in the Lower Hudson Valley region we're in now,
Speaker 1: I'm going to be confused by which phase we're in.
Speaker 1: I guess we're in the phase where we can be
Speaker 1: really fully open with a lot of restrictions on how
Speaker 1: many people can come in. UM, but we are UM,
Speaker 1: we're taking and we're having We're trying to keep one
Speaker 1: customer and at a time where if two customers come in,
Speaker 1: then one of us leaves spaces physically very small, and
Speaker 1: there's not, um, a lot of ventilation. We just have
Speaker 1: a door. We don't have me you know, we have
Speaker 1: the shop windows, but no like airfow windows, and it
Speaker 1: just doesn't feel like the kind of space that you want. Yeah,
Speaker 1: I mean for social distancing. Yeah, it's tricky. Um. Demitro
Speaker 1: just got about thirty seconds left here. I mean, as
Speaker 1: you guys continue to cover this, Um, what are you
Speaker 1: looking to do? Well? I mean, I think we're looking
Speaker 1: at more stories of just how people are approaching this because,
Speaker 1: as we've heard with other interviews, no guidance really right.
Speaker 1: Nobody gives you a roadmap to reopening, and everybody is different. Um,
Speaker 1: And I think it's interesting and helpful and useful to
Speaker 1: hear about the ways that stores are making these decisions.
Speaker 1: You'll read more about Abigail and Lily's decisions about their
Speaker 1: story later in the week when we do a fuller story.
Speaker 1: But we're looking to track that and just see how
Speaker 1: it's going and to stand on top of it over
Speaker 1: the long run, Um, when bigger decisions are going to
Speaker 1: be confronted that might be much more fundamentally challenging decisions
Speaker 1: about the longevity of the business, you know, because I
Speaker 1: do think now this reality is setting up on us
Speaker 1: that it's going to be very hard to make our
Speaker 1: way through this to a point where we're really back
Speaker 1: and living the way we were living four months ago,
Speaker 1: five months ago. Yeah for sure. Yeah, all right, Well,
Speaker 1: thank you both so much. To meet your Cassanin's editor
Speaker 1: for Bloomberg joining us on the phone. And Abigail Chapin
Speaker 1: it is time for the drive too close, one of
Speaker 1: our favorites, friend of the show. I know, I love
Speaker 1: when she comes and hangs out with us in the studio,
Speaker 1: but we are in a distant world right now, but
Speaker 1: happy to have with us. Hillary Kramer, President ce IO
Speaker 1: at A and G Capital. Hillary, how the heck are you?
Speaker 1: I am doing very very well. Thank you, Jason good.
Speaker 1: So what's the what's your world like at this moment
Speaker 1: in terms of you know, just like talking to clients
Speaker 1: looking at the market like it's obviously an upside down,
Speaker 1: topsy turvy world. But you know, you've seen crises, you've
Speaker 1: seen cycles generally, what do you make of this one?
Speaker 1: The market has hoped for tomorrow and until something breaks it.
Speaker 1: So there's a break in it. The market is going
Speaker 1: to keep. It'll just keep going higher, and investors are
Speaker 1: still being forced to go into the stock market, and
Speaker 1: the Federal Reserve is making it phenomenally easy. You know,
Speaker 1: it's easy money, easy money. And uh, I was just
Speaker 1: looking a triple B bond. Okay, basically do almost junk
Speaker 1: is two point seven percent? Well, people are willing to
Speaker 1: buy it because the ten years giving them point six percent.
Speaker 1: So corporations are able to, you know, continue to issue
Speaker 1: the debt out there and it keeps getting bought. But
Speaker 1: in terms of Jason your specific question, because I know
Speaker 1: what has to do with you know, where are we
Speaker 1: finding what niche are we finding opportunities? We're finding plenty
Speaker 1: of opportunities, especially in these small caps like we just, um,
Speaker 1: we just put a buy on Sally. Sally Beauty as
Speaker 1: h small cap did two dollars and twenty six cents
Speaker 1: US years dollars this year, and it's it's a great
Speaker 1: undervalued company. But everybody thinks that COVID nineteen is going
Speaker 1: to hit it a lot worse. The other one that
Speaker 1: I believe I have spoken about before is valvolen v
Speaker 1: z Z. Yeah, Valvoine nine dollars stop. There's two point
Speaker 1: three four percent of diving in yield. We love it.
Speaker 1: We think you could go to twenty four to twenty five.
Speaker 1: I mean it's right now nineteen and a half dollars,
Speaker 1: so it's it's not like some double out there. But
Speaker 1: I'll take two point three percent. And people aren't buying
Speaker 1: new cars. Okay, so they're not buying new cars. Wait, wait, wait,
Speaker 1: I have to get in Wait, I don't agree with you.
Speaker 1: I'm out all the roads, Hillary, and I feel like
Speaker 1: everyone is out there. I see all these new cars
Speaker 1: with you know, you can tell they have the license plates,
Speaker 1: the tempts, the temporary plates, um. And I just feel
Speaker 1: like a lot of people because maybe they're not going
Speaker 1: to get on a plane, maybe they're more inclined to
Speaker 1: get in the car and go for a ride and
Speaker 1: they feel safe in their cars. Well they're they're in
Speaker 1: their cars and they're gonna need uh an oil change,
Speaker 1: that's for sure, because they're going long distances. They're gonna
Speaker 1: need new wipers and and that's exactly what Volvoline does.
Speaker 1: You can do it yourself, or you can go into
Speaker 1: you know, one of their quick group shops. But in
Speaker 1: terms of actual cars, look, Mercedes is doing zero percent
Speaker 1: financing that the car companies are really struggling out there.
Speaker 1: Take a look at a range Rover a lot and
Speaker 1: they're like practically doubled up one on top of the other.
Speaker 1: Now there could be other cars. I also have a Subaru.
Speaker 1: Subaru is great, but you know, if I can tell you,
Speaker 1: Subaru is backed up in the service center. And that's
Speaker 1: because people, from what I'm seeing, aren't buying new cars now.
Speaker 1: Every year, you know, we have an average of how
Speaker 1: many new cars are being bought at twelve million, eighteen
Speaker 1: million and uh and we have yet to see actually
Speaker 1: what happens. But in the next six months to come,
Speaker 1: I believe we're gonna see a lot to try traveling,
Speaker 1: you know, that's for sure, Caroline. But at the same time,
Speaker 1: we're going to see people changing oil themselves, and there's
Speaker 1: that pent up demand for it because they've been home
Speaker 1: for three months. So we've been talking a lot about tech,
Speaker 1: Hillary and tech. Big tech especially has had a nice run.
Speaker 1: But I have to think that feels a little bit
Speaker 1: over bought at this point, knowing you a little bit
Speaker 1: like that feels like someplace that you might not be
Speaker 1: going as the things right well, It's actually interesting, Jason,
Speaker 1: what a great point because with my team we were
Speaker 1: just talking about Facebook. I said, why is I want
Speaker 1: everyone to say, why is Facebook not down more? Having
Speaker 1: lost all of these advertisers. And of course it's what
Speaker 1: percentage is you know dub soap and what new know
Speaker 1: Leaver and what percentage is Verizon? But you know, the
Speaker 1: markets betting it over the long term, these advertisers are
Speaker 1: going to come back, you know, they just are. And
Speaker 1: big Tech the markets ignoring valuation, and you know they
Speaker 1: really are ignoring them. You know that being said, will
Speaker 1: be interesting to see if Apple can get up there
Speaker 1: and hit new highs. Uh. You know it's high with
Speaker 1: three dollars this year, it's at three six. Let's see
Speaker 1: what happens with with Apple. That's the one I'm kind
Speaker 1: of keeping my eye on. To me, that's just such
Speaker 1: an important indicator because we really where the consumer is at,
Speaker 1: because right, I mean, consumers can either keep the one
Speaker 1: they have or they can buy a new one if
Speaker 1: they feel like they have money in their pockets, if
Speaker 1: they feel confident. So that's where the Apple is just
Speaker 1: a great proxy for understanding where the market stands. But
Speaker 1: in terms of tech, look, I'm very excited because ets
Speaker 1: hit fifty two weeks new high today, eBay hit in
Speaker 1: fifty two week high Shopify and you know what the
Speaker 1: best one of all I know you'll love this group
Speaker 1: Match Drew No. Okay, that's actually come to our attention
Speaker 1: at recently. It's up fifty seven percent here. It's a
Speaker 1: hundred and five dollar stock. They have Okay Cupid, they
Speaker 1: have lots of swiping that you can do. But the
Speaker 1: bottom line is, I think people really fundamentally got lonely
Speaker 1: and realized how important family and relationships are when they
Speaker 1: were quarantined at home. And uh, I just think Match
Speaker 1: probably has potential to continue going up from here. Especially
Speaker 1: people aren't going to be going into bars, you know,
Speaker 1: so even the people who are, I guess gonna be
Speaker 1: swiping more than looking for their long term love that
Speaker 1: we're also on Match, so uh, I would say that's
Speaker 1: one to really watch. So Jason Tech, look for those texts,
Speaker 1: uh that that are very related there. And I'm not
Speaker 1: going to get into Chewi because now I think Chewy
Speaker 1: the online well you could do that one for me
Speaker 1: because I hillary, I love I love dogs. You can
Speaker 1: do that. You got about twenty seconds. Okay, chew chewy
Speaker 1: dot COM's d h W. Why everyone else? I started
Speaker 1: with Chewy ay three dollars, saying by it, by it,
Speaker 1: by it, And I think Chewy has upside potential. From here,
Speaker 1: Amazon would be foolish not to step in and buy
Speaker 1: Chewy dot Com or maybe even some big retailer. So
Speaker 1: Chewy is is more popular than ever before. And and Carol,
Speaker 1: what do you have? You have Afghans? What kind of dogs?
Speaker 1: I have an Irish terrier Scout? Okay, I guess if
Speaker 1: you follow um maybe most summer. I don't know if
Speaker 1: it's going to be the case this summer, but most
Speaker 1: of August Carol's Twitter feed is just filled with pictures
Speaker 1: of Scout on a boat. So family doesn't let me
Speaker 1: take pictures of them, so I've decided the Scout can't argue.
Speaker 1: All right, Hillary Kerber, always good to catch up with you,
Speaker 1: really nice to hear your voice. Be well, look forward
Speaker 1: to seeing you on the other side of all this.
Speaker 1: Thanks so much for listening to Bloomberg Business Week. Download
Speaker 1: the podcast on iTunes, Southcloud, Blueberg dot com, or wherever
Speaker 1: you get your podcast, And of course you can always
Speaker 1: listen to our radio show at two pm Eastern on
Speaker 1: Bloomberg Radio, or watch us on YouTube by searching Bloomberg
Speaker 1: Global News