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Speaker 1: This is Bloomberg Business Week. I'm Carole Masser and I'm

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Speaker 1: Bloomberg Quick Takes Tim Stanovk. We're here every day bringing

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Speaker 1: you the latest news from the world to business and finance,

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Speaker 1: plus technology, politics, economics, all partnising the power of Business

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Speaker 1: Week reporters and editors, not to mention our journalists and

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Speaker 1: analysts in more than one twenty countries. You can download

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Speaker 1: Bloomberg Business Weekend iTunes, SoundCloud, or Bloomberg dot Com. You

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Speaker 1: can also listen to our radio show at two pm

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Speaker 1: Eastern Time on the Bloomberg Radio or watch us on

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Speaker 1: YouTube search Bloomberg Global News. Tim and I just broke

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Speaker 1: down some of the cases, and I do think among

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Speaker 1: those top headlines are confirmed cases in the US or

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Speaker 1: forty seven percent excuse me in the weekending Sunday. So

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Speaker 1: that's the largest weekly rise since April. And we know

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Speaker 1: even in the europe in you in European nations like

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Speaker 1: they're opening up, Tim, but they're very cautious, uh, in

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Speaker 1: terms of how they do it. It's not just that

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Speaker 1: we're also seeing some vaccine news, the Watchington Post reporting

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Speaker 1: that the FDA is expected to announce new warnings on

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Speaker 1: Jane Jay COVID vaccine. We saw J and J shares

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Speaker 1: fall on that news. Well, let's get right into it

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Speaker 1: with Dr Rohnda Meadows, President of Health Management Providence St.

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Speaker 1: Joseph Help, joining us on the phone from Renton, Washington.

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Speaker 1: Doctor Meadows, Um, how are you? I am doing great?

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Speaker 1: How are you doing well? You know, Carol and I

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Speaker 1: late last week we started talking a lot about the variant,

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Speaker 1: and we started talking a lot about what we should

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Speaker 1: be doing even though we're vaccinated to protect ourselves as

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Speaker 1: we continue to see cases increase, and we're just eager

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Speaker 1: to hear from you how you're reading into the startling

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Speaker 1: number of cases that we're seeing reported around the United States,

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Speaker 1: even when vaccinations are readily available. Well they're readily available,

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Speaker 1: but we've got people who are not taking advantage of

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Speaker 1: their their access the ability they actually get them. We

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Speaker 1: talk about people being vaccine hesitant, but if we really

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Speaker 1: looked at it, there's probably five different groups. People who

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Speaker 1: decline the vaccine because they don't believe that COVID virus

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Speaker 1: itself is going to be a harm to them or

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Speaker 1: to their loved ones. People who delay because they wanted

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Speaker 1: to see how the vaccine is going to do in

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Speaker 1: terms of long term time effects and immunity. And the

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Speaker 1: people who have four recently decided that they want to

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Speaker 1: get it now, they need to find access, transportation, and

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Speaker 1: time out of work to go'll get the vaccine itself.

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Speaker 1: And then finally, remember that our children at the age

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Speaker 1: of twelve are not yet authorized to receive the vaccine.

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Speaker 1: They've got a lot of people who are unvaccinated. At

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Speaker 1: a time when the COVID virus itself continues to grow

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Speaker 1: and to mutate. The Delta variant is the one that

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Speaker 1: we are all watching. It's the one that is the

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Speaker 1: dominant COVID virus that is going across our nation as

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Speaker 1: we speak. Um. That is its accounting for about of

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Speaker 1: all hospitalizations from COVID and all almost deaths. Dr medus.

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Speaker 1: One of the reasons we love talking with you and

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Speaker 1: all of the team at Providence St. Joseph's health is

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Speaker 1: the first official case was confirmed of COVID nineteen in

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Speaker 1: Washington State at Providence Regional Medical Center and Everett. That

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Speaker 1: was back in Jevary January. I've got to say, is

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Speaker 1: there any discussions that you guys are having a little

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Speaker 1: bit of like tangles up the spine, saying, wait a minute,

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Speaker 1: we've we've felt this before, we've seen this before, or

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Speaker 1: is it different because we do have a playbook on

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Speaker 1: how to treat it, we do have vaccines. So what's

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Speaker 1: the difference of people who might be listening to our

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Speaker 1: broadcast right now and who might be a little nervous. Well,

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Speaker 1: I have to tell you that what's different is we

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Speaker 1: actually know quite a bit more than we did last January. Um.

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Speaker 1: We actually know that the vaccine does work when it

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Speaker 1: is received by people, and we know how to better

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Speaker 1: treat people when they do come down with the viral

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Speaker 1: infection itself. We've got a lot of more things to

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Speaker 1: do to help people now than we had last year.

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Speaker 1: Our difficulty is now and making sure that we do

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Speaker 1: the extra work and identifying where there are pockets of

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Speaker 1: people who are unvacculated and helping them get access to

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Speaker 1: those vaccines. And if they don't want it, then we

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Speaker 1: have to make sure that they understand what risk they're

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Speaker 1: taking and what risk they're putting others out. Well, that's

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Speaker 1: a good question, and especially you know Tim pointed out,

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Speaker 1: and this is I think probably our most important headline

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Speaker 1: today is the FDA expected to announce a new warning

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Speaker 1: on the J and J COVID vaccine is coming from

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Speaker 1: the Washington Post. Headlines like that make people even more

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Speaker 1: nervous about getting the vaccine. By not getting the vaccine,

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Speaker 1: you can't force somebody to do it, right, It's it's

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Speaker 1: their choice. But having said that, then for those who

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Speaker 1: do get vaccinated, what do they need to be careful about?

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Speaker 1: Then understanding that there are people still out there that

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Speaker 1: can be hosts and carriers of new variants, and can

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Speaker 1: we who are vaccinated be a carrier of these new

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Speaker 1: variants as well? So less likely if you're fully vaccinated,

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Speaker 1: meaning you can see two doses of either the Visor

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Speaker 1: or more Donna vaccine, you are less likely to be

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Speaker 1: a kill. You're u less likely to get the illness,

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Speaker 1: not but maybe something percent right, so much higher? Um.

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Speaker 1: I think what people need to think about when they're

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Speaker 1: getting the vaccine today, even when they hear the different news,

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Speaker 1: whether Richard J and J or someone else, is an

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Speaker 1: a mixture that they weigh their own risk, their own

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Speaker 1: health risk to of what COVID would do to them

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Speaker 1: if they actually got it the actual illness itself, and

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Speaker 1: make sure that they also weigh the risk of what

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Speaker 1: it will do to their loved ones because they are

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Speaker 1: the carrier for the source of transmission to their loved

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Speaker 1: ones in their home, particularly when people live in multi

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Speaker 1: generational homes, there's an increased risk. That's that's that far

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Speaker 1: exceeds in east side effects potential, But the vacuum itself.

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Speaker 1: I understand worries. Well, we have heard stories just in

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Speaker 1: the last minute. Then we're gonna come back with you, um,

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Speaker 1: doctor Meadows. But I'm wondering if you at a Providence

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Speaker 1: Saint Choseph's Health are are requiring people who work there

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Speaker 1: to get vaccinated. We we don't actually have a vaccine mandate.

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Speaker 1: We have a vaccine policy where we're encouraging our workforce

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Speaker 1: to get the vaccine. If they decline to get the

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Speaker 1: vaccine for whatever reason, then they are actually required to

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Speaker 1: wear a personal protective gear to protect both themselves, the

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Speaker 1: patients and their colleagues at work. Um. This applies to

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Speaker 1: everybody in our health care facilities m both ambiatory acute

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Speaker 1: anywhere that and long term care. Do you anticipate that

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Speaker 1: could change if these get full FDA approval? I do.

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Speaker 1: I think it's a matter of when it gets full approval.

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Speaker 1: When we're able to get people to really buy in

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Speaker 1: and feel more trust. That small group that's still has itant,

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Speaker 1: we have work to do to encourage them um to

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Speaker 1: make sure they understand what's going on. At the same time,

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Speaker 1: we also need to continue the effort of keeping people

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Speaker 1: that they are treating and care for safe. That responsibility

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Speaker 1: as well. I want to get back to Dr Rohnda Meadows,

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Speaker 1: president of Health Management at Providence St. Joseph Health. It

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Speaker 1: is one of the largest health care systems in the

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Speaker 1: U S. Was home to the first confirmed COVID case

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Speaker 1: back in early She's still with us on the phone

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Speaker 1: from Wenton Washington, Rent in Washington. Excuse me, hey, Dr Meadows.

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Speaker 1: One thing I want to just follow up on the

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Speaker 1: conversation we were having before the break is that, so

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Speaker 1: what do we there are those individuals who have gotten

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Speaker 1: the vacs seen need to be concerned about worry about

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Speaker 1: when it comes to those who haven't had it. I

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Speaker 1: think it's more a matter of those who are already

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Speaker 1: vaccinated encouraging those who haven't to get vaccinated, because as

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Speaker 1: long as they are unvaccinated pockets of people there is

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Speaker 1: actually the opportunity for the virus to continue to mutate

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Speaker 1: and spread. Right now with the delta variant, we're looking

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Speaker 1: at something that is more highly transmissible UM, and it

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Speaker 1: is causing the people who are sick in hospitalization for

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Speaker 1: covid UM. There's also accounting for nine of the death

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Speaker 1: that are occurring. Accounts are increasing. The people who are

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Speaker 1: vaccinated are actually much more protected UM. They're less likely

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Speaker 1: to get ill UM, but with what we don't want

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Speaker 1: them to do is to become carriers. Less likely but

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Speaker 1: still possible. So it's really more about the unvaccinated UM.

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Speaker 1: The people who are vascinated have children are going to

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Speaker 1: be wanting to protect their children if they run as

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Speaker 1: well on seriod of TALL and can't be vaccinated. If yet,

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Speaker 1: Dr Meadows, I want to talk about something that Carol

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Speaker 1: and I have spoken a lot about on on Bloomberg

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Speaker 1: Business Week Radio, and it's the other crisis that are happening. Well,

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Speaker 1: we are still dealing with this pandemic. There has been

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Speaker 1: a renewed focus on mental health over the last eighteen

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Speaker 1: months because of isolation in the way that the pandemic

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Speaker 1: has affected each and every one of us in different

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Speaker 1: and diverse ways. And then I'm wondering about community support

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Speaker 1: systems for mental health during crises such as these, What

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Speaker 1: is available and to what extent are are people actually

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Speaker 1: tapping into them? Okay, I think we're going to find

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Speaker 1: UM that what the services that people chapped into during

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Speaker 1: one Most of us knew that we did not have

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Speaker 1: enough clinic or professional base in person fights available for access.

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Speaker 1: People have availed themselves to virtual online mental health services

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Speaker 1: and group counseling a group chats will need more of those.

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Speaker 1: What I'm expecting, and I think what most of us

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Speaker 1: are expecting is that the increase in depression, substance use,

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Speaker 1: substance abuse UM, anxiety disorders, post traumatic stress type disorders

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Speaker 1: will not have been resolved anytime soon. We can do

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Speaker 1: is actually get the resources increased and available to address them.

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Speaker 1: And this is not just for adults. I am probably

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Speaker 1: more concerned about children because they again not only have

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Speaker 1: suffered through the pandemic, but disruption of their social starcles,

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Speaker 1: of their education, of their home life UM, and of

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Speaker 1: the social supports that they normally would get if they

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Speaker 1: were in the schools or in community groups and activities.

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Speaker 1: So this abject is going to be a long term

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Speaker 1: UM challenge that we're going to have to address and

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Speaker 1: if we haven't started enough now we need to get

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Speaker 1: going and whither wise we may find ourselves with a

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Speaker 1: generation of lost children. No, it's a really good point,

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Speaker 1: a really important point, uh, and something we can't just

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Speaker 1: kind of forget as the world gets back to somewhat

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Speaker 1: of a quote unquote normal status. UM. I do have

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Speaker 1: a question for you though, in your conversations with health

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Speaker 1: care plans, I mean, are things changing in terms of

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Speaker 1: how we think about care wellness care? We have lots

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Speaker 1: of conversations about it, but I do wonder whether or

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Speaker 1: not we're thinking differently about how we all take care

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Speaker 1: of our health generally when we're feeling good, and how

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Speaker 1: we look about think about maintaining that wellness. And just

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Speaker 1: got about forty seconds here, Okay, we are both on

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Speaker 1: the health plan side and our delivery side, and I think, well,

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Speaker 1: this I'm speaking about Providence is actually across the board

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Speaker 1: and other industry partners that we've been working with UM wellness, prevention, immunization,

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Speaker 1: but also the importance of actually doing integrated care that

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Speaker 1: includes mental health services. Most places you will see will

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Speaker 1: also have a commitment to health equity, which means addressing

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Speaker 1: the disparities that have been there long term, as well

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Speaker 1: as disparities and COVID. Right now, we have another opportunity

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Speaker 1: right now today to prevent the next wave of a

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Speaker 1: bit illnesses from being desparing right from impacting black and

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Speaker 1: hispatic populations. Worse. Right now, the vaccination rates and these

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Speaker 1: populations are still lower that we want to see them.

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Speaker 1: They We didn't make some gains, but not enough. We

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Speaker 1: have blocks of work to do, all right, We've got

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Speaker 1: to run um. Thank you so much for your time today.

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Speaker 1: Dr Rhonda Meadows, president of Health Management at Providence St.

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Speaker 1: Joseph's Health, on the phone from Wenton, Washington. The gaps

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Speaker 1: just are still their ten. Yeah. It's it's in a way,

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Speaker 1: it's just mind boggling to think we're so far but

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Speaker 1: yet so far away from actually being done with this pandemic. Yeah, exactly.

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Speaker 1: This is Bloomberg Business Week with Carol Masser and Bloomberg

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Speaker 1: Quick Takes Tim Stinovic from Bloomberg Radio. Coming up in

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Speaker 1: this week's issue of Bloomberg Business Week a story on

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Speaker 1: how crypto exchanges have a plan to beat finance. It's

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Speaker 1: the exchange that has quietly and rather mysteriously taken the

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Speaker 1: top spot among the world's cryptocurrency exchanges. So unraveling some

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Speaker 1: of the mystery of this very mysterious world in general.

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Speaker 1: Is Bloomberg News Finance reporter Catch Klinsky. She's on the

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Speaker 1: phone in New York City along with Business Week editor

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Speaker 1: Chill Weber on the remote access line in Brooklyn, and

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Speaker 1: we already had like a really great conversation about everything.

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Speaker 1: We said, again, mind, you know what, what stands out

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Speaker 1: to me the story that Cat is the lead writer

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Speaker 1: on is sort of what this universe of crypto exchanges

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Speaker 1: looks like. And there is a sort of a bad

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Speaker 1: boy actor that is the elephant in the room here,

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Speaker 1: which is which is binance? Right? Cat? And in order

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Speaker 1: to compete with um finance, what have the competitive landscaped

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Speaker 1: of crypto exchanges chosen to do? For many years now,

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Speaker 1: it's been really hard to compete with Finance. I mean,

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Speaker 1: they list so many coins, you know, they really are

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Speaker 1: you know, they've taken the top spot UM quite easily.

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Speaker 1: And so now we're seeing a lot of exchanges as

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Speaker 1: finance sort of in the cross hairs of a lot

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Speaker 1: of global regulators and under a lot of scrutiny. We

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Speaker 1: see more exchanges saying, hey, no, we're going to be

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Speaker 1: sort of, you know, the one that follows the rules,

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Speaker 1: and we're going to hope that that strategy long term

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Speaker 1: pays off. Whether it does, I think will be sort

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Speaker 1: of remains to be seen. But you know, I think

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Speaker 1: it's one way that a lot of exchanges now are

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Speaker 1: trying to plot their own path. Finance, though, doesn't even

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Speaker 1: allow US customers explain what's going on here because there's

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Speaker 1: also Finance am I saying this right, Finance dot US

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Speaker 1: or Finance U S you're correct, and yeah, and they're

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Speaker 1: they're different. They were founded by the you know, same person,

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Speaker 1: and they have licensed some technology in the past, but

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Speaker 1: but they maintain it very separately. And I think that's

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Speaker 1: what you've seen a lot of science changes. I mean,

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Speaker 1: if you look at many of the top ones, a

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Speaker 1: lot of them don't actually allow US investors. And part

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Speaker 1: of this is sort of district regulatory regime we tend

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Speaker 1: to have in this country, even though you know, crypto

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Speaker 1: obviously is still a newer asset to be regulated. And

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Speaker 1: I think part of that is many many of these

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Speaker 1: exchanges say, we don't you know, We're not going to

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Speaker 1: go through all these hurtles in a constantly changing world.

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Speaker 1: But you see many exchanges like you know, take Gemini

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Speaker 1: obviously founded by the Winklebox twin. They're really trying to say, no,

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Speaker 1: it's the right path is to enter this you know,

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Speaker 1: this more regulated country and trying and plot a path here.

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Speaker 1: And that's how long term, you know, our strategy is

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Speaker 1: going to pay off. Let's let's talk more about the

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Speaker 1: Winkle v the plural form of the winkle box tins

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Speaker 1: um and Gemini um cat. So that what they basically

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Speaker 1: say they're doing is like, we know that there will

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Speaker 1: be rules eventually, and so we need to basically get

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Speaker 1: ahead of regulators and and except that there will be rules, right, Um,

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Speaker 1: So how has that worked out for them versus even

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Speaker 1: the other exchanges that are saying something similar? Yeah, So,

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Speaker 1: I mean that is their strategy. They created the Virtual

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Speaker 1: Commodity Association, which was sort of, you know, essentially to

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Speaker 1: be like kind of almost a self policing share for

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Speaker 1: this industry to think about, how do you actually you know,

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Speaker 1: set up a regulatory theme and an asset that's so

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Speaker 1: knew that many regulators are just trying to get their

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Speaker 1: heads around. But you know, it hasn't worked out obviously

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Speaker 1: that well yet, and that's because it's being companies like

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Speaker 1: Finance who will list every point, you know, and um

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Speaker 1: maybe are a little less scrutinizing with those. Um we've

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Speaker 1: seen them jep to the top. And I think you know,

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Speaker 1: but the companies that are trying to follow these regulations

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Speaker 1: are saying now that Finance is under a lot of scrutiny,

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Speaker 1: they're saying, hey, you know, this is this is part

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Speaker 1: of our strategy is to work our way through these

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Speaker 1: you know, regulations, even if they're new, because it is

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Speaker 1: going to be worth it in the end. Um. But

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Speaker 1: you know, even to Gemini's point, you know, they say,

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Speaker 1: the landscape here in the US moving very slow, so

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Speaker 1: they've got to you know, kind of expand a little

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Speaker 1: more globally to make sure that that they can keep

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Speaker 1: pace right and cut us the exchanges to to something

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Speaker 1: extented doing their own policing right. I mean, there's so

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Speaker 1: many new cryptocurrencies out there, there's thousands, so they've got

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Speaker 1: to kind of weed through and decide which ones actually

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Speaker 1: get to trade on their exchanges, agreed. And it is

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Speaker 1: actually kind of challenging. You know. We we talked to

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Speaker 1: someone at Galaxy Digital, Jason Urban. He's there a global

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Speaker 1: cohead of trading, and he said, you know, not only

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Speaker 1: do you have to a figure out how to connect

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Speaker 1: all these coins to the exchange, you have to make

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Speaker 1: sure you have to set up in the technology behind it,

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Speaker 1: but you also have to sort of scrutinize, you know,

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Speaker 1: whether this is an unregistrated unregistrated security and there's not

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Speaker 1: a lot of clarity, so you have to sort of

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Speaker 1: you know, have a lot of legal and compliance teams.

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Speaker 1: And that's what we've seen over the past you know years,

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Speaker 1: is a lot of these exchanges, such as coin Base,

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Speaker 1: which obviously recently went public, hiring more people to help

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Speaker 1: with compliance and policy and issues like that, which is

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Speaker 1: a whole other issue. If you become a public entity

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Speaker 1: where you're trading, I don't know, I can't get my

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Speaker 1: head around it. Okay, can we just take a step

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Speaker 1: back here, because I think this is a world that

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Speaker 1: is still unfamiliar to so many people and and really

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Speaker 1: explain people, for people who haven't necessarily bought and sold cryptocurrency,

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Speaker 1: what it is exactly these exchanges do the services they offer. Yeah,

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Speaker 1: so many of them obviously offer range of services, but

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Speaker 1: obviously the big one is they allow you to actually

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Speaker 1: trade the coins on them. Some of them will offer

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Speaker 1: also offer services such as custody and different um different

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Speaker 1: you know, offerings for institutional clients as well, so any

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Speaker 1: you know, pictured plant touch managers anything like that. Um So. Yeah,

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Speaker 1: so they often have a range of services, but trading

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Speaker 1: is obviously the big one. You know. They essentially want

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Speaker 1: to have you know, investors who are interested to help

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Speaker 1: kind of beef up the activity on their platform, but

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Speaker 1: they also need to be scrutinizing and make sure that

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Speaker 1: they're you know, not adding coins that are just you know,

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Speaker 1: com completely fraudules. So when when you think about and

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Speaker 1: this is super simplistic, but you have the rules and

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Speaker 1: the exchanges that are buiding by the rules, and maybe

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Speaker 1: the binances that are maybe not as clear how they

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Speaker 1: stand on it. And then you've got obviously the regulators,

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Speaker 1: and what do we think that the regulators are just

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Speaker 1: going to look at you know, even these homegrown rules,

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Speaker 1: if you will, How are they going to look at

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Speaker 1: that when the time comes? Yeah, I mean I think

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Speaker 1: you know, regulators are trying and We've seen it a lot,

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Speaker 1: especially with comments from the Biden administration. You know, regulators

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Speaker 1: are trying to really kind of wrap their heads around it,

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Speaker 1: and how do you actually impose sort of a framework

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Speaker 1: on this world, which is you know, meant to be

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Speaker 1: sort of uh a little more, a little more outside

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Speaker 1: you know, the realms of normal, normal finance. Um. So,

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Speaker 1: I think there's going to be a lot of changes

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Speaker 1: probably over the next few years, as regulators start to say,

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Speaker 1: you know, here's what we need from this from this

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Speaker 1: part of the market. I just feel like there's so

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Speaker 1: many questions gotta figure it out. What do you end

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Speaker 1: up with multiple exchanges? Like, I mean, I think that's

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Speaker 1: exactly right, right, I mean, that's not without uh you

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Speaker 1: know president how it works. I mean, well, one thing

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Speaker 1: that's amazing to me is just how big they become

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Speaker 1: when such a small portion of it's effectively like you

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Speaker 1: you blinked and it's ntic. Yeah. Well, which is what

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Speaker 1: you were saying before we got started, is think about

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Speaker 1: what happened in the past decade, like what the next

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Speaker 1: decade breaks, I mean exactly right, like ten years of

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Speaker 1: what we've just gone through, and then you think about

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Speaker 1: all the splintering. I'm like thinking of watching Loki just

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Speaker 1: to understand what happens with time. Oh man, that's the

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Speaker 1: best reference the week already. All right, thank you so much,

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Speaker 1: catch glean Skin and Toolebber. This is Bloomberg Business Week

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Speaker 1: with Carol Masser and Bloomberg Quick Takes Tim Stinovik on

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Speaker 1: Bloomberg Radio. So there have been a flour of headlines

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Speaker 1: out of China's The Chinese government has been cracking down

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Speaker 1: on data security, and the big Chinese companies that collected

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Speaker 1: all on the crossfire DV Global, they warn't today have

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Speaker 1: an adverse impact after complying with the Chinese order to

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Speaker 1: remove twenty five more apps from mobile stories for violations

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Speaker 1: of data security loss. So much going on, Tim, you

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Speaker 1: and I have been talking about it. We couldn't wait

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Speaker 1: to kind of catch up with Andy Brown. He's been

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Speaker 1: on vacation, but he's here now because we know China

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Speaker 1: is clearly on a mission. And of course, Bloomberg New

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Speaker 1: Economy Editorial director uh in our Interactor Broker's studio, the

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Speaker 1: reason we want to talk to you is you understand

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Speaker 1: China like no other. To be quite honest, you've worked there,

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Speaker 1: lived there Um worked for the Wall Street Journal for

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Speaker 1: a long time. What what is the mission that China's

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Speaker 1: on right now? What we're seeing right now is for

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Speaker 1: the evidence that the US and Chinese economies decoupling. The

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Speaker 1: relationship is falling apart. We've seen it in the tech space,

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Speaker 1: We've seen it in the internet space, and now we're

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Speaker 1: starting to see it in capital markets. That China is

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Speaker 1: effectively making it a lot more difficult for its own

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Speaker 1: companies to access US capital markets, which ironically is exactly

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Speaker 1: what two successive US presidents, starting with Donald Trump and

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Speaker 1: continuing now under Joe Biden, have had in mind. It's

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Speaker 1: their agenda too. They have been sanctioning Chinese companies and

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Speaker 1: making it more difficult for US investors to buy into

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Speaker 1: their shares. This extends that what is the motivation? Why

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Speaker 1: would they do that? Because it seems like they wanted

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Speaker 1: to be a part of the global market scene, right, Well,

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Speaker 1: you know, data isn't certainly right at the heart of it,

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Speaker 1: so Um, But also you know, you have to remember,

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Speaker 1: and this is interesting, and people don't I think acknowledge

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Speaker 1: is nearly enough that the Chinese tech sector was really

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Speaker 1: funded and incubated by Western vcs, Western Private equity UM

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Speaker 1: and China is in a different place now, it's a

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Speaker 1: different era and they really don't need US capital in

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Speaker 1: the same way as they did. And now they're concerned

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Speaker 1: about control over data. That concerned about it as part

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Speaker 1: of the geopolitical struggle with the United States, and also

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Speaker 1: in terms of economic management. They want the data and

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Speaker 1: control over the data that Chinese tech giants have. I

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Speaker 1: get that that that makes sense, I understand that, But

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Speaker 1: but what does that mean for a company like Disney,

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Speaker 1: or a company like Nike, or a company like Apple,

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Speaker 1: three very different companies. But the companies that see the

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Speaker 1: Chinese market as really really important and companies that are

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Speaker 1: have products that are gobbled up by Chinese consumers. You know,

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Speaker 1: China wants Chinese data in China, stored in China and

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Speaker 1: subject to you to Chinese regulatory control, which Apple has

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Speaker 1: been able to figure out a way to successfully navigate.

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Speaker 1: The This is this is much more about Chinese companies

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Speaker 1: going off shore to get foreign investment. But but if

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Speaker 1: if we're indeed seeing a decoupling of these two economies,

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Speaker 1: then wonder about the companies that don't necessarily have data

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Speaker 1: like a Nike for example, or a Disney or is

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Speaker 1: are we going to see a decoupling there? That has

430
00:23:09,080 --> 00:23:12,359
Speaker 1: to be the risk any US company, any foreign company

431
00:23:12,400 --> 00:23:17,840
Speaker 1: that has access to Chinese data could find itself as

432
00:23:17,920 --> 00:23:22,199
Speaker 1: this decoupling progresses, in a vulnerable position. Over the weekend,

433
00:23:22,400 --> 00:23:25,320
Speaker 1: we saw a regulation coming out, new rules coming out

434
00:23:25,359 --> 00:23:29,280
Speaker 1: that says that any Chinese company that has over one

435
00:23:29,600 --> 00:23:33,040
Speaker 1: Internet company that has over one million subscribers is going

436
00:23:33,080 --> 00:23:36,120
Speaker 1: to be subject to a cybersecurity review before it can

437
00:23:36,160 --> 00:23:40,639
Speaker 1: list overseas. That basically accounts for every Internet company in China,

438
00:23:40,800 --> 00:23:44,600
Speaker 1: right exactly. That's a small number of users, right, So, Andy,

439
00:23:44,640 --> 00:23:47,440
Speaker 1: what's the risk of China and all of this or yeah,

440
00:23:47,560 --> 00:23:49,080
Speaker 1: is there a real risk for them of kind of

441
00:23:49,119 --> 00:23:53,760
Speaker 1: cutting themselves off? It feels like yeah, I mean, you know,

442
00:23:53,920 --> 00:24:00,000
Speaker 1: the the risk is that you're going to disincentivize innovation

443
00:24:00,359 --> 00:24:05,720
Speaker 1: in China. Um. They're going after their tech champions, starting

444
00:24:05,760 --> 00:24:09,240
Speaker 1: with Ali Baba. You know, Jack ma Uh, the founder,

445
00:24:09,400 --> 00:24:13,760
Speaker 1: co founder of Ali Baba, was the most public figure

446
00:24:13,880 --> 00:24:16,720
Speaker 1: in China. You don't hear from him anymore. He's he's

447
00:24:16,800 --> 00:24:21,000
Speaker 1: he's he's gone, he's gone to ground. They've effectively silenced him.

448
00:24:21,119 --> 00:24:24,840
Speaker 1: Ali Baba has lost one third of its market value

449
00:24:25,000 --> 00:24:29,000
Speaker 1: since the whole business started with the listing of Aunt Financial,

450
00:24:29,000 --> 00:24:31,600
Speaker 1: which is going to be the biggest Chinese foreign listing

451
00:24:32,040 --> 00:24:35,600
Speaker 1: in history, and now that's extended now ten cents under pressure.

452
00:24:35,680 --> 00:24:39,240
Speaker 1: Now Matoine is under under pressure. And these the giants

453
00:24:39,359 --> 00:24:42,320
Speaker 1: of Chinese innovation. What does it mean for a company

454
00:24:42,320 --> 00:24:44,800
Speaker 1: like Bite Dance, the parent company of TikTok. This is

455
00:24:44,800 --> 00:24:46,760
Speaker 1: a company that Bloomberg has reported that in the private

456
00:24:46,760 --> 00:24:50,360
Speaker 1: markets it's valued at two and fifty billion dollars right,

457
00:24:50,480 --> 00:24:53,800
Speaker 1: So so TikTok might well have been one of those

458
00:24:53,800 --> 00:24:56,480
Speaker 1: companies that was going to go off shore. We don't

459
00:24:56,480 --> 00:24:58,919
Speaker 1: know quite what its plans were, and now of course

460
00:24:59,280 --> 00:25:03,800
Speaker 1: this cost doubt about whether it's ever gonna list overseas.

461
00:25:03,880 --> 00:25:07,000
Speaker 1: Some of these companies, however, might end up in Hong Kong.

462
00:25:07,080 --> 00:25:11,000
Speaker 1: The problem there is that actually the hurdle, the regulatory

463
00:25:11,080 --> 00:25:14,160
Speaker 1: hurdles for listing in Hong Kong and in the mainland

464
00:25:14,200 --> 00:25:17,320
Speaker 1: are substantially higher than they are in the United States.

465
00:25:17,560 --> 00:25:19,960
Speaker 1: So you you might get some companies that won't list

466
00:25:20,119 --> 00:25:21,920
Speaker 1: at all as a result of it. But I don't

467
00:25:21,960 --> 00:25:24,680
Speaker 1: understand is I feel like, you know, China has been

468
00:25:24,720 --> 00:25:27,639
Speaker 1: working to be part of kind of the mainstream world right.

469
00:25:27,640 --> 00:25:29,840
Speaker 1: They want to be innovators. They want to be in

470
00:25:29,880 --> 00:25:32,879
Speaker 1: the capital markets. They're trying to attack bringing rather the

471
00:25:33,119 --> 00:25:36,280
Speaker 1: global financial sector. It feels like they're just turning their

472
00:25:36,320 --> 00:25:38,800
Speaker 1: back on the world. Are they in essence and will

473
00:25:38,840 --> 00:25:41,399
Speaker 1: they isolate themselves? And doesn't really matter because they've got

474
00:25:41,440 --> 00:25:43,840
Speaker 1: a billion plus and they can probably do just find

475
00:25:43,880 --> 00:25:46,639
Speaker 1: feels like the world is breaking into over tech is

476
00:25:46,720 --> 00:25:49,639
Speaker 1: breaking into two. You're going to have a China and

477
00:25:49,680 --> 00:25:53,560
Speaker 1: the Chinese sphere of tech influence and then a US

478
00:25:53,720 --> 00:25:57,960
Speaker 1: US influenced sphere. The breaking a part of the global

479
00:25:57,960 --> 00:26:01,200
Speaker 1: economy is one of the greatest risk to global growth

480
00:26:01,240 --> 00:26:02,919
Speaker 1: going forward. Well, the rest of the world have to

481
00:26:02,960 --> 00:26:05,520
Speaker 1: make clear choices about I'm with I'm either with the

482
00:26:05,560 --> 00:26:08,199
Speaker 1: US or I'm with China. The world doesn't want to

483
00:26:08,240 --> 00:26:11,040
Speaker 1: have to make those choices. China's neighbors certainly don't want

484
00:26:11,080 --> 00:26:13,280
Speaker 1: to make those choices, but increasingly it looks like they're

485
00:26:13,280 --> 00:26:15,880
Speaker 1: going to have to choose. What is alright, twenty seconds left.

486
00:26:15,920 --> 00:26:17,639
Speaker 1: Don't hate me because I'm jamming you. But what does

487
00:26:17,640 --> 00:26:19,600
Speaker 1: it mean for investors? Global investors? How they have to

488
00:26:19,600 --> 00:26:22,359
Speaker 1: look at this. You know, it doesn't mean that US

489
00:26:22,400 --> 00:26:26,440
Speaker 1: invests a cut off from investing in Chinese internet companies.

490
00:26:26,640 --> 00:26:30,000
Speaker 1: You can still invest as an American investor through this

491
00:26:30,119 --> 00:26:33,399
Speaker 1: tie up between Hong Kong, Shanhai, Shanja and stock exchanges.

492
00:26:33,720 --> 00:26:36,800
Speaker 1: It does, however, have a pretty big profound impact on

493
00:26:36,840 --> 00:26:40,080
Speaker 1: the likes of Global Goldman Sachs and Morgan Stanley, who

494
00:26:40,119 --> 00:26:42,080
Speaker 1: made a lot of money last year out of a

495
00:26:42,160 --> 00:26:45,520
Speaker 1: very thick pipeline of Chinese listings, and that pipeline is

496
00:26:45,560 --> 00:26:47,919
Speaker 1: now drying out the I p O market. This is

497
00:26:47,960 --> 00:26:50,320
Speaker 1: why we we're waiting for you, Andy Brown. Thank you

498
00:26:50,400 --> 00:26:52,120
Speaker 1: so much. Good to have you back at a trail

499
00:26:52,200 --> 00:27:00,880
Speaker 1: director at Bloomberg New Economy here in our studio a journal. Yeah,

500
00:27:00,960 --> 00:27:06,240
Speaker 1: but you let me drive nor home, Honney. Please, I'll

501
00:27:06,280 --> 00:27:13,240
Speaker 1: do the right vel. I want to drive. Just drive baby,

502
00:27:16,040 --> 00:27:27,400
Speaker 1: good question trying. This is the drive to the Globe community. Thanks.

503
00:27:27,440 --> 00:27:31,879
Speaker 1: We'll dry us to dawn on Bluebird Radio. All right,

504
00:27:31,880 --> 00:27:33,560
Speaker 1: we've just got about ten and a half minutes left

505
00:27:33,560 --> 00:27:35,919
Speaker 1: in today's trading session on a Monday. Let's get to

506
00:27:36,000 --> 00:27:38,760
Speaker 1: it with Brian Jacobson, multi asset strategist over at Wells

507
00:27:38,760 --> 00:27:42,280
Speaker 1: Fargo Asset management five nine billion dollars in assets under

508
00:27:42,280 --> 00:27:45,840
Speaker 1: management on the phone from Milwaukee, Wisconsin, Brian. Nice to

509
00:27:45,880 --> 00:27:47,960
Speaker 1: have you here with Tim and myself. So when you

510
00:27:48,000 --> 00:27:49,840
Speaker 1: look at this week, there's a lot going on. There's

511
00:27:49,880 --> 00:27:53,840
Speaker 1: economic data. J Powell will be going up before Congress

512
00:27:53,880 --> 00:27:56,080
Speaker 1: and a couple of days of testimony, and then there's

513
00:27:56,119 --> 00:27:59,520
Speaker 1: the big bank earnings along with some some other earnings

514
00:27:59,560 --> 00:28:01,520
Speaker 1: that are coming at. Is it all about the big

515
00:28:01,520 --> 00:28:05,680
Speaker 1: banks for you? Yeah, thanks for having me on. Um, well,

516
00:28:05,680 --> 00:28:08,240
Speaker 1: it's probably about the bucks and the playoffs for me

517
00:28:08,600 --> 00:28:14,359
Speaker 1: or yeah, but you know, it is really about the

518
00:28:14,400 --> 00:28:18,040
Speaker 1: bank earnings. Earning season is kicking off, and um, I

519
00:28:18,080 --> 00:28:20,800
Speaker 1: have worked with Margie Patel, who you've had on the

520
00:28:20,800 --> 00:28:24,200
Speaker 1: shop or you know, and she taught me a long

521
00:28:24,240 --> 00:28:26,560
Speaker 1: time ago pay attention to what the banks are saying

522
00:28:26,600 --> 00:28:29,880
Speaker 1: as far as with the guidance. Uh. And that's I've

523
00:28:29,880 --> 00:28:31,960
Speaker 1: sort of lived by that and so far it's worked

524
00:28:31,960 --> 00:28:34,240
Speaker 1: out pretty well. Uh. You know, if they're saying that

525
00:28:34,240 --> 00:28:37,240
Speaker 1: the economic recovery is gathering steam, because they really do

526
00:28:37,359 --> 00:28:40,280
Speaker 1: have the boots on the ground in order to see

527
00:28:40,320 --> 00:28:43,479
Speaker 1: what's going on with not just you know, big corporate America,

528
00:28:43,520 --> 00:28:46,440
Speaker 1: but with small and medium sized enterprises and households. They

529
00:28:46,480 --> 00:28:49,120
Speaker 1: really do have their pulse on the health of the

530
00:28:49,120 --> 00:28:51,840
Speaker 1: economy and that's what I'm really interested in looking at.

531
00:28:52,200 --> 00:28:54,960
Speaker 1: What specifically are you gonna be listening for for for

532
00:28:54,960 --> 00:28:58,920
Speaker 1: for guidance for commentary on the economy from these executives

533
00:28:58,920 --> 00:29:02,680
Speaker 1: this week. Brian, Yeah, I'm really hoping to hear about

534
00:29:02,760 --> 00:29:06,959
Speaker 1: commentary as far as loan demands. You know that banks

535
00:29:07,120 --> 00:29:10,760
Speaker 1: are ready willing and able to lend, but is the

536
00:29:10,840 --> 00:29:13,800
Speaker 1: demand therefore it uh? And in the area of that

537
00:29:14,640 --> 00:29:17,440
Speaker 1: you are you talking financial business? What are you talking

538
00:29:17,480 --> 00:29:21,280
Speaker 1: specifically with London and mainly with small businesses as far

539
00:29:21,320 --> 00:29:25,280
Speaker 1: as their willingness to take out loans to expand. So

540
00:29:25,320 --> 00:29:28,120
Speaker 1: it really is looking at the small business lending because

541
00:29:28,120 --> 00:29:30,240
Speaker 1: so far, if you look at what banks have done

542
00:29:30,280 --> 00:29:34,440
Speaker 1: effectively is originate loans that are guaranteed by the government.

543
00:29:34,720 --> 00:29:37,600
Speaker 1: And what we'd like to see is more the risk

544
00:29:37,720 --> 00:29:41,560
Speaker 1: taking holding it on their own balance sheets with the banks,

545
00:29:41,800 --> 00:29:45,840
Speaker 1: which can also be a higher profit margin loans. And

546
00:29:46,160 --> 00:29:49,680
Speaker 1: that's one of the reasons why we're actually overweight financials

547
00:29:49,680 --> 00:29:52,320
Speaker 1: and more cyclical areas and a lot of our portfolios

548
00:29:52,360 --> 00:29:54,320
Speaker 1: on my team is because we do think that is

549
00:29:54,400 --> 00:29:57,080
Speaker 1: going to begin to happen, and so we're hoping to

550
00:29:57,280 --> 00:29:59,680
Speaker 1: see confirming evidence of it. So you would be taking

551
00:29:59,680 --> 00:30:02,080
Speaker 1: position and ahead of the results the quarterly results on

552
00:30:02,120 --> 00:30:04,440
Speaker 1: some of these big banks. They're they're up today and

553
00:30:04,480 --> 00:30:06,920
Speaker 1: there there are top performing major industry group in the

554
00:30:07,000 --> 00:30:09,280
Speaker 1: S and P five hundreds, the big banks. Uh, you're

555
00:30:09,280 --> 00:30:12,000
Speaker 1: seeing some significant gains here and really providing momentum for

556
00:30:12,040 --> 00:30:15,400
Speaker 1: the overall trade. Would you be taking positions ahead of

557
00:30:15,440 --> 00:30:18,680
Speaker 1: those results? Oh? Well, that is how we have been

558
00:30:18,720 --> 00:30:22,640
Speaker 1: positioning portfolios and anticipation of it. Yes, And so you know,

559
00:30:22,720 --> 00:30:27,680
Speaker 1: we were overweight cyclical areas like industrials, Uh, but we've

560
00:30:27,680 --> 00:30:31,160
Speaker 1: sort of rotated a little bit more into uh, like

561
00:30:31,200 --> 00:30:34,280
Speaker 1: the financials and materials getting more exploicure like that. But

562
00:30:34,320 --> 00:30:37,480
Speaker 1: a lot of it is also rotating more towards Europe

563
00:30:37,560 --> 00:30:40,600
Speaker 1: and emerging markets, where we think that you know, there

564
00:30:40,600 --> 00:30:42,960
Speaker 1: are a bellow a season behind us in terms of

565
00:30:43,080 --> 00:30:46,840
Speaker 1: with the vaccination rollout and the economic recovery, and so

566
00:30:46,880 --> 00:30:49,120
Speaker 1: we think that they might be a season behind us

567
00:30:49,120 --> 00:30:52,000
Speaker 1: in terms of the market moves. Hey, how weird are

568
00:30:52,040 --> 00:30:53,560
Speaker 1: you about in terms of some of the headlines we're

569
00:30:53,560 --> 00:30:56,040
Speaker 1: getting out of China specifically when it comes to their

570
00:30:56,080 --> 00:30:58,800
Speaker 1: growth rates and tempering back some of the growth that

571
00:30:58,840 --> 00:31:03,280
Speaker 1: we've seen China so crucial to overall global growth. Should

572
00:31:03,360 --> 00:31:06,000
Speaker 1: we be nervous as investors when we start to see

573
00:31:06,000 --> 00:31:08,120
Speaker 1: some of the growth numbers in China start to be

574
00:31:08,600 --> 00:31:11,320
Speaker 1: reined in. We we've seen China also doing taking steps

575
00:31:11,320 --> 00:31:13,600
Speaker 1: to Chinese government and the Chinese financial system to kind

576
00:31:13,600 --> 00:31:16,080
Speaker 1: of help juice their economic growth because they too are

577
00:31:16,080 --> 00:31:19,760
Speaker 1: seeing the slowdown. Oh, they are seeing that slowdown. Yeah,

578
00:31:19,800 --> 00:31:22,200
Speaker 1: coming out of the COVID recovery. You know, they were

579
00:31:22,240 --> 00:31:24,000
Speaker 1: the they were the first ones in and then they

580
00:31:24,000 --> 00:31:26,640
Speaker 1: were the first ones out. It was mainly led by

581
00:31:26,680 --> 00:31:29,800
Speaker 1: manufacturing and then by on the retail side. And it

582
00:31:29,800 --> 00:31:33,600
Speaker 1: doesn't seem like the retail getting a massive amount of traction.

583
00:31:33,680 --> 00:31:36,560
Speaker 1: And so I think that it does merit monitoring what's

584
00:31:36,560 --> 00:31:39,080
Speaker 1: going on with the Chinese growth numbers. But you know,

585
00:31:39,160 --> 00:31:41,840
Speaker 1: they do seem to want to almost play with the

586
00:31:41,880 --> 00:31:44,320
Speaker 1: throttle a little bit. And the most recent one is

587
00:31:44,360 --> 00:31:47,600
Speaker 1: as far as reducing reserve requirements for banks in order

588
00:31:47,600 --> 00:31:51,320
Speaker 1: to stimulate the lending um. So they I think that

589
00:31:51,480 --> 00:31:53,960
Speaker 1: it does merit monitoring, but we're not too worried about

590
00:31:54,240 --> 00:31:56,840
Speaker 1: them having any sort of like hard landing or anything

591
00:31:57,120 --> 00:32:00,120
Speaker 1: of those sorts, because, Uh, you know, thus far are

592
00:32:01,000 --> 00:32:04,000
Speaker 1: while the growth camp slowed, it's still a pretty aggressive

593
00:32:04,040 --> 00:32:07,800
Speaker 1: growth rate that we're seeing coming out of China. Brian,

594
00:32:07,840 --> 00:32:09,680
Speaker 1: what about you know later in the this is a

595
00:32:09,800 --> 00:32:12,200
Speaker 1: very busy weeks. Carol mentioned a ton of economic data.

596
00:32:12,200 --> 00:32:14,800
Speaker 1: We have bank earnings. I'm also fed Chair Powell heading

597
00:32:14,840 --> 00:32:18,400
Speaker 1: to Capitol Hill, Uh, for two days of testimony about

598
00:32:18,400 --> 00:32:22,080
Speaker 1: the economy, about monetary policy. Uh, what are you watching

599
00:32:22,080 --> 00:32:24,080
Speaker 1: for there? Do you think that we've seen Powell in

600
00:32:24,080 --> 00:32:26,880
Speaker 1: the past, he's been very restrained when when like many

601
00:32:26,920 --> 00:32:29,680
Speaker 1: fed chairs of of of past, when it comes to

602
00:32:29,720 --> 00:32:32,000
Speaker 1: answering questions, do you expect anything different than we saw

603
00:32:32,040 --> 00:32:35,000
Speaker 1: in in minutes? Do you expect anything different than we

604
00:32:35,000 --> 00:32:38,080
Speaker 1: saw at a press conference. Yeah, it's almost like we

605
00:32:38,280 --> 00:32:42,120
Speaker 1: see them every week, sometimes every day, and so it's

606
00:32:42,360 --> 00:32:44,680
Speaker 1: you know, what changes from one moment to the next.

607
00:32:44,720 --> 00:32:47,560
Speaker 1: But I think that with Chair Poll's testimony, Um, he

608
00:32:47,640 --> 00:32:51,320
Speaker 1: might want to start slow walking things towards tapering. Right,

609
00:32:51,680 --> 00:32:55,120
Speaker 1: we know that they didn't want to slow walk. I

610
00:32:55,160 --> 00:32:59,960
Speaker 1: think it's a crawl. Brian. Now, yeah, it's more like

611
00:33:00,280 --> 00:33:03,320
Speaker 1: this a glacial past towards the tapering, and I think

612
00:33:03,360 --> 00:33:06,360
Speaker 1: that's maybe what we're going to see in his testimony

613
00:33:06,440 --> 00:33:08,880
Speaker 1: is that, hey, you know what, the inflation data is

614
00:33:08,920 --> 00:33:11,080
Speaker 1: a little bit stronger than we thought, but the growth

615
00:33:11,160 --> 00:33:13,479
Speaker 1: numbers are stronger than we thought. We still have plenty

616
00:33:13,480 --> 00:33:16,440
Speaker 1: of room in order to um, you know, before we

617
00:33:16,480 --> 00:33:19,160
Speaker 1: get to having inflation being a problem. We have plenty

618
00:33:19,200 --> 00:33:21,920
Speaker 1: of tools to deal with this does. And so, yeah,

619
00:33:21,920 --> 00:33:24,760
Speaker 1: we're having the conversation about tapering, and so I think

620
00:33:24,760 --> 00:33:27,000
Speaker 1: that maybe he'll mention that a few more times. So

621
00:33:27,080 --> 00:33:29,600
Speaker 1: before it was like, you know, not even on the table,

622
00:33:29,680 --> 00:33:33,200
Speaker 1: and now it's become a centerpiece of the conversation of

623
00:33:33,840 --> 00:33:35,960
Speaker 1: the members of the fm C, and so we'll probably

624
00:33:36,040 --> 00:33:40,120
Speaker 1: just hear a little bit more about that during his testimony. Uh.

625
00:33:40,160 --> 00:33:43,520
Speaker 1: In terms of things to be concerned about, there's always

626
00:33:43,560 --> 00:33:46,800
Speaker 1: a list out there, and we keep trying to assess

627
00:33:46,840 --> 00:33:49,080
Speaker 1: the risks of you know, the variants that are coming

628
00:33:49,080 --> 00:33:50,520
Speaker 1: out with the virus and what that could mean for

629
00:33:50,560 --> 00:33:52,480
Speaker 1: the economy. Tim and I be talking to a bunch

630
00:33:52,480 --> 00:33:56,200
Speaker 1: of CEOs this week in different sectors, the cruise industry

631
00:33:56,440 --> 00:34:02,160
Speaker 1: and industrials. How do you factor in sess strategize around

632
00:34:02,440 --> 00:34:05,840
Speaker 1: what might come next when it comes to COVID. Yeah,

633
00:34:06,240 --> 00:34:09,960
Speaker 1: for us, it's more about a sentiment at the moment. Right.

634
00:34:10,120 --> 00:34:13,800
Speaker 1: A big part of the moves and the markets has

635
00:34:13,880 --> 00:34:16,839
Speaker 1: been about the anticipation of the economic recovery, and we're

636
00:34:16,880 --> 00:34:20,680
Speaker 1: beginning to see evidence of that of those things that

637
00:34:20,719 --> 00:34:24,280
Speaker 1: the market was anticipating. UM. And while we have gone

638
00:34:24,320 --> 00:34:27,120
Speaker 1: past the what we think we have gone past the

639
00:34:27,160 --> 00:34:30,879
Speaker 1: peak inflationary fears, we may have also gone past the

640
00:34:30,920 --> 00:34:35,680
Speaker 1: peak optimism fears or the peak optimism about growth. Right.

641
00:34:35,719 --> 00:34:40,399
Speaker 1: So you had peak inflation fears coupled with peak growth optimism,

642
00:34:40,800 --> 00:34:44,520
Speaker 1: and that created an environment with yields rising. Equity still

643
00:34:44,600 --> 00:34:48,880
Speaker 1: consntinuing the charge ahead. But if sentiment is beginning to

644
00:34:48,880 --> 00:34:50,560
Speaker 1: shift towards you know, is this as good as it

645
00:34:50,560 --> 00:34:54,880
Speaker 1: gets um, that's where it could create some more headwinds

646
00:34:54,960 --> 00:34:57,920
Speaker 1: for the equity markets until maybe we see the labor

647
00:34:57,960 --> 00:35:00,600
Speaker 1: market significantly improved, which we don't think we're going to

648
00:35:00,680 --> 00:35:04,200
Speaker 1: see more signs of that, definitive signs of it until

649
00:35:04,280 --> 00:35:07,800
Speaker 1: probably the fourth quarter of this year. So we're actually

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00:35:07,880 --> 00:35:10,360
Speaker 1: preparing ourselves more to be a little bit more neutral

651
00:35:10,560 --> 00:35:15,440
Speaker 1: in terms of positioning um and to anticipate some volatility

652
00:35:15,600 --> 00:35:18,600
Speaker 1: through the summer months here, but setting us up for

653
00:35:18,760 --> 00:35:21,719
Speaker 1: probably a pretty decent fourth quarter. It's the master sell off,

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00:35:21,719 --> 00:35:23,160
Speaker 1: That's what we call it, because every time I go

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00:35:23,239 --> 00:35:25,840
Speaker 1: away in August, the last few summers, the last few years,

656
00:35:25,920 --> 00:35:27,879
Speaker 1: you know, kind of pre COVID, we would always get

657
00:35:28,120 --> 00:35:32,200
Speaker 1: a pretty decent sell off. You know, we thought it

658
00:35:32,200 --> 00:35:35,640
Speaker 1: was because it's my birthday. All right, it's the Brian

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00:35:35,719 --> 00:35:39,480
Speaker 1: Jacobson birthday sell off. It's gonna go by Multiple News.

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00:35:39,760 --> 00:35:42,240
Speaker 1: All right, listen, Brian, Thank you so much. Brian Jacobson,

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00:35:42,320 --> 00:35:46,360
Speaker 1: multi assets strategist over at Wells Fargo asset Management, billion

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00:35:46,400 --> 00:35:52,280
Speaker 1: in assets under management, on the phone from Milwaukee. Thanks

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00:35:52,280 --> 00:35:56,160
Speaker 1: for listening to Bloomberg Business Week. Download the podcast on iTunes, SoundCloud,

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00:35:56,280 --> 00:35:58,400
Speaker 1: or Bloomberg dot com. And you can also listen to

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00:35:58,440 --> 00:36:00,680
Speaker 1: our radio show at two pm Easter In on Bloomberg

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00:36:00,760 --> 00:36:03,839
Speaker 1: Radio or watch us on YouTube search Bloomberg Global News

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Speaker 1: m