1 00:00:04,080 --> 00:00:08,400 Speaker 1: Broadcasting live to New York, Bloomberg eleven Rio to Washington, 2 00:00:08,480 --> 00:00:13,440 Speaker 1: d C. Bloomberg to Boston, Bloomberg twelve hundred to San Francisco, 3 00:00:13,600 --> 00:00:17,600 Speaker 1: Bloomberg to the country. See is Exam General one nine 4 00:00:17,640 --> 00:00:20,960 Speaker 1: team and around the globe the Bloomberg Radio Plus athen 5 00:00:21,000 --> 00:00:27,000 Speaker 1: Bloomberg dot com. This is taking Stock. I'm Kathleen Hayes, 6 00:00:27,040 --> 00:00:30,280 Speaker 1: a very special show today. We're broadcasting live from the 7 00:00:30,320 --> 00:00:33,880 Speaker 1: Federal Reserve Bank of Cleveland. Coming up will very exclusive 8 00:00:33,960 --> 00:00:37,800 Speaker 1: interview with Cleveland Fed President Loretta Mester. How did that? 9 00:00:37,840 --> 00:00:41,600 Speaker 1: We're looking at the Cleveland economy. Coming up Dr Toby 10 00:00:41,720 --> 00:00:45,800 Speaker 1: gos Cosgrove, CEO of the Cleveland Clinic. Their model is 11 00:00:45,840 --> 00:00:48,480 Speaker 1: known across the country. We're going to find out more 12 00:00:48,520 --> 00:00:52,120 Speaker 1: about their work and how medical innovation is driving the 13 00:00:52,200 --> 00:00:56,040 Speaker 1: regional economy. Now, let's get back to our own Katherine Cowdery, 14 00:00:56,160 --> 00:01:00,600 Speaker 1: She's back at Bloomberg World Headquarters with a Bloomberg Business Flash, Ky, Kathleen, 15 00:01:00,720 --> 00:01:02,840 Speaker 1: or a stock market starting off the fourth quarter with 16 00:01:03,040 --> 00:01:06,240 Speaker 1: a retreat. Utilities and real estate companies are down the most. 17 00:01:06,400 --> 00:01:08,000 Speaker 1: Nine of the eleven sectors in the S and P 18 00:01:08,120 --> 00:01:11,360 Speaker 1: five hundred are lower. A report on manufacturing is fueling 19 00:01:11,400 --> 00:01:14,400 Speaker 1: speculation that the Federal Reserve will raise interest rates. Is here. 20 00:01:14,760 --> 00:01:17,840 Speaker 1: Manufacturing expanded at AM not as space in September after 21 00:01:17,959 --> 00:01:21,480 Speaker 1: unexpectedly shrinking a month earlier. The report from the Institute 22 00:01:21,480 --> 00:01:25,040 Speaker 1: for Supply Management underscores a limited progress for the battered sector. 23 00:01:25,480 --> 00:01:28,600 Speaker 1: Michael Faroli chief he was economist at JP Morgan Securities, 24 00:01:28,760 --> 00:01:32,080 Speaker 1: on that manufacturing report. The August I s M was 25 00:01:32,160 --> 00:01:34,360 Speaker 1: a bit of a disappointment. I think what we saw 26 00:01:34,360 --> 00:01:36,520 Speaker 1: today was a lot of that being sort of repaired. 27 00:01:36,840 --> 00:01:38,360 Speaker 1: So we're back kind of to where we were in 28 00:01:38,440 --> 00:01:41,800 Speaker 1: June July, which is not, you know, very expansive levels, 29 00:01:41,800 --> 00:01:44,720 Speaker 1: but it is at least above fifties, so uh so 30 00:01:44,720 --> 00:01:47,440 Speaker 1: it's a positive development. I think manufacturing is slowly getting 31 00:01:47,440 --> 00:01:49,600 Speaker 1: back on its feet, but it's uh I wouldn't call 32 00:01:49,640 --> 00:01:53,000 Speaker 1: the robust manufacturing sector that we're looking at. We check 33 00:01:53,040 --> 00:01:55,160 Speaker 1: in markets every fifteen minutes throughout the trading day down 34 00:01:55,160 --> 00:01:57,920 Speaker 1: Industrial leverages down fifty eight point a third of a percent, 35 00:01:58,240 --> 00:02:01,080 Speaker 1: trading at eighteen thousand, two hundred five d SMP five 36 00:02:01,080 --> 00:02:04,760 Speaker 1: foundered down eight points four tents of a percent nine 37 00:02:04,840 --> 00:02:07,000 Speaker 1: and as Jack is down seventeen points a third of 38 00:02:07,040 --> 00:02:11,080 Speaker 1: a percent, trading at less Texas Intermedia. Crude oil up 39 00:02:11,120 --> 00:02:13,600 Speaker 1: forty seven cents a barrel, again of one percent at 40 00:02:13,600 --> 00:02:16,760 Speaker 1: forty eight seventy one, spickled down three dollar sixty cents 41 00:02:16,760 --> 00:02:19,760 Speaker 1: agounce at thirteen thirteen fifty, and the Tenure Treasury down 42 00:02:19,760 --> 00:02:22,400 Speaker 1: seven thirty seconds with the yield of one point six 43 00:02:22,440 --> 00:02:26,000 Speaker 1: two percent. Among today's top business stories, auto sales came 44 00:02:26,000 --> 00:02:30,360 Speaker 1: in stronger than analysts anticipated in September, fueled by record incentives. 45 00:02:30,639 --> 00:02:33,080 Speaker 1: It suggests that there may still be some steam left 46 00:02:33,080 --> 00:02:36,440 Speaker 1: in the auto industry six year growth spurt. Nissan's US 47 00:02:36,480 --> 00:02:39,399 Speaker 1: sales rose at four point nine percent compared to last year. 48 00:02:39,880 --> 00:02:41,240 Speaker 1: And now let's get an update of some of the 49 00:02:41,240 --> 00:02:45,359 Speaker 1: other stories were following at Bloomberg Radio today. Thank you 50 00:02:45,440 --> 00:02:48,880 Speaker 1: Katherine from the Bloomberg Newsroom. I'm Matt Miller. The Washington 51 00:02:49,000 --> 00:02:51,600 Speaker 1: Redskins lost a bid to go straight to the Supreme 52 00:02:51,639 --> 00:02:55,760 Speaker 1: Court to reinstate the team's US government trademark. Federal protection 53 00:02:55,800 --> 00:02:58,679 Speaker 1: of the brand was officially revoked for being offensive to 54 00:02:58,800 --> 00:03:02,919 Speaker 1: American Indians, but Bloomberg's Bob Moon reports the team could 55 00:03:02,960 --> 00:03:05,639 Speaker 1: still find some support for its case. What does a 56 00:03:05,680 --> 00:03:08,000 Speaker 1: football team name the Redskins have to do with an 57 00:03:08,000 --> 00:03:11,239 Speaker 1: Asian American band named the Slants. Both insist their names 58 00:03:11,280 --> 00:03:13,600 Speaker 1: aren't disparaging and contend they have a right to protect 59 00:03:13,639 --> 00:03:16,120 Speaker 1: their trademarks. While the Supreme Court won't act on the 60 00:03:16,160 --> 00:03:18,680 Speaker 1: Redskins appeal, it'll hear the band's argument that it has 61 00:03:18,680 --> 00:03:20,600 Speaker 1: a free speech right to turn a slur into a 62 00:03:20,680 --> 00:03:23,040 Speaker 1: name of pride. The football team owners have made a 63 00:03:23,040 --> 00:03:27,040 Speaker 1: similar argument in their public relations campaign. The Washington Redskins 64 00:03:27,080 --> 00:03:29,919 Speaker 1: stand for strength, courage, and respect. What the High Court 65 00:03:29,960 --> 00:03:32,760 Speaker 1: decides about the rock bands controversial name could thus affect 66 00:03:32,760 --> 00:03:35,440 Speaker 1: the Redskins lawsuit. The Supreme Court ruling is due by 67 00:03:35,480 --> 00:03:39,120 Speaker 1: next June. Bob Moon Bloomberg Radio Hurricane Matthew is expected 68 00:03:39,160 --> 00:03:41,640 Speaker 1: to bring a seven foot storm surge and as much 69 00:03:41,640 --> 00:03:44,640 Speaker 1: as forty inches of rain to some parts of Haiti. 70 00:03:44,800 --> 00:03:49,480 Speaker 1: Hurricane specialist John Canjelosi at the National Hurricane Center says 71 00:03:49,520 --> 00:03:53,120 Speaker 1: the storm shows no signs of weakening, for we think 72 00:03:53,200 --> 00:03:56,800 Speaker 1: hurricane force winds are expected across the island beginning leader 73 00:03:56,880 --> 00:04:01,440 Speaker 1: today and tonight, uh similar conditions for winds in Jamaica. 74 00:04:01,680 --> 00:04:05,240 Speaker 1: Matthew is packing winds near one hundred thirty miles per hour, 75 00:04:05,920 --> 00:04:09,320 Speaker 1: and the engineer of a commuter train that crashed in Hoboken, 76 00:04:09,320 --> 00:04:12,040 Speaker 1: New Jersey, killing one person and injuring more than a 77 00:04:12,120 --> 00:04:15,680 Speaker 1: hundred told investigators he has no memory of the crash. 78 00:04:16,120 --> 00:04:19,920 Speaker 1: One recovered data recorder wasn't functioning. Investigators are still looking 79 00:04:20,000 --> 00:04:22,520 Speaker 1: for a second. Globen is twenty four hours a day, 80 00:04:22,560 --> 00:04:25,240 Speaker 1: powered by over twenty hundred journalists and analysts and more 81 00:04:25,240 --> 00:04:28,120 Speaker 1: than one of the twenty countries. I'm Matt Miller. This 82 00:04:28,560 --> 00:04:33,080 Speaker 1: is Bloomberg, Catherine, thank you, and coming up the Bloomberg 83 00:04:33,120 --> 00:04:36,400 Speaker 1: Healthcare segment, brought to you by Triton Benefits and HR Solutions, 84 00:04:36,640 --> 00:04:39,800 Speaker 1: one of the countries leading benefits providers. Visit Triton Benefits 85 00:04:39,800 --> 00:04:43,160 Speaker 1: dot com. That's t r I t O N Benefits 86 00:04:43,200 --> 00:04:47,520 Speaker 1: dot com or call eight five five, okay Triton. Here's 87 00:04:47,520 --> 00:04:50,000 Speaker 1: an update of the benchmark. Stow Industrial lverages down fifty 88 00:04:50,040 --> 00:04:52,880 Speaker 1: two points at eighteen thousand, two hundred fifty six, SMP 89 00:04:52,960 --> 00:04:55,640 Speaker 1: five foundered down eight points at sixty, and the nastack 90 00:04:55,760 --> 00:04:58,640 Speaker 1: is down sixteen points at fifty two ninety six. And 91 00:04:58,680 --> 00:05:04,440 Speaker 1: that's a Bloomberg business five. This is taking stock with 92 00:05:04,640 --> 00:05:09,640 Speaker 1: bim box at Kathleen As on bloom Bird Radio. We 93 00:05:09,720 --> 00:05:13,160 Speaker 1: are broadcasting line today Cleveland, the Federal Reserve Bank of Cleveland. 94 00:05:13,200 --> 00:05:16,280 Speaker 1: Coming up our special interview with Loretta Mester, President of 95 00:05:16,360 --> 00:05:20,120 Speaker 1: Cleveland FED. We're serving the Cleveland economy. Ahead of that interview. 96 00:05:20,440 --> 00:05:24,200 Speaker 1: Very happy to welcome now one of the big drivers. 97 00:05:24,240 --> 00:05:28,560 Speaker 1: That's Dr Delas Cosgrove, known to just about everybody as Toby, President, 98 00:05:28,760 --> 00:05:32,400 Speaker 1: CEO and director at the Cleveland Clinic. Welcome to the show. 99 00:05:32,640 --> 00:05:35,239 Speaker 1: Thank you very much player to be here. Well, Toby 100 00:05:35,240 --> 00:05:38,160 Speaker 1: start by telling us our listeners about the Cleveland Clinic 101 00:05:38,240 --> 00:05:40,720 Speaker 1: and what it does. It does a lot. Well, Cleveland 102 00:05:40,680 --> 00:05:43,280 Speaker 1: Clinics started at different the way we're organized. We're a 103 00:05:43,320 --> 00:05:48,600 Speaker 1: group practice of about uh and we are all salry. 104 00:05:48,800 --> 00:05:52,080 Speaker 1: There's no financial incentives or bonuses for the doctors or 105 00:05:52,120 --> 00:05:56,239 Speaker 1: anybody else here. We all have one year contracts um 106 00:05:56,320 --> 00:06:00,480 Speaker 1: and we have an annual professional review. The reviews equality 107 00:06:00,480 --> 00:06:03,520 Speaker 1: of the physicians who participate, so that I think that's 108 00:06:03,560 --> 00:06:06,440 Speaker 1: a very major difference from almost any other organization the 109 00:06:06,520 --> 00:06:09,520 Speaker 1: United States. Well, one of the things that caught my 110 00:06:09,600 --> 00:06:12,920 Speaker 1: eye that you have been talking about is medical innovation 111 00:06:13,400 --> 00:06:16,520 Speaker 1: and the rebirth of cities. How is that happening. How 112 00:06:16,560 --> 00:06:19,680 Speaker 1: is it happening in Cleveland. Well, this has been a 113 00:06:19,760 --> 00:06:23,080 Speaker 1: very big project for us UH, and we have put 114 00:06:23,120 --> 00:06:26,279 Speaker 1: together away to begin to take the intellectual capital of 115 00:06:26,360 --> 00:06:28,400 Speaker 1: the Cleveland connect and the things that are thought up 116 00:06:28,400 --> 00:06:32,520 Speaker 1: here and begin to spin them out into the community. 117 00:06:33,400 --> 00:06:35,880 Speaker 1: So far we have in the last fifteen years have 118 00:06:36,040 --> 00:06:38,920 Speaker 1: about a thousand patents and the spun off over seventy 119 00:06:38,960 --> 00:06:44,600 Speaker 1: countries companies. Most recently UH company that we started to 120 00:06:44,680 --> 00:06:48,920 Speaker 1: hear was called Explorers, which collected the fifty million patient 121 00:06:49,000 --> 00:06:53,680 Speaker 1: records and was sold recently to IBM for their use 122 00:06:53,720 --> 00:06:58,840 Speaker 1: and their Watson Health h There's also so there's lots 123 00:06:58,880 --> 00:07:04,640 Speaker 1: of companies here. There's about seven UM medical UH companies 124 00:07:04,960 --> 00:07:07,479 Speaker 1: in Northeast Ohio at this time, which has really begin 125 00:07:07,600 --> 00:07:10,480 Speaker 1: to change the look of the economy of Northeast Ohio. 126 00:07:11,200 --> 00:07:12,960 Speaker 1: What does the what does the city have to have 127 00:07:13,160 --> 00:07:17,440 Speaker 1: to attract the talent, find the workers and make this 128 00:07:17,640 --> 00:07:21,520 Speaker 1: model grow. Well, I think the two things that come together. 129 00:07:21,560 --> 00:07:24,600 Speaker 1: First of all, you have to have a great healthcare 130 00:07:24,240 --> 00:07:26,960 Speaker 1: delivery system. And if you look at almost any city 131 00:07:26,960 --> 00:07:30,400 Speaker 1: in the country, the biggest employer in the city, UH 132 00:07:30,520 --> 00:07:35,080 Speaker 1: is the healthcare industry, which is also the biggest industry 133 00:07:35,080 --> 00:07:38,200 Speaker 1: in the United States now that is attracting a lot 134 00:07:38,240 --> 00:07:44,680 Speaker 1: of people with the great ideas and great intellectual capacity. 135 00:07:44,760 --> 00:07:46,720 Speaker 1: And the question really is how you harness that and 136 00:07:46,760 --> 00:07:49,240 Speaker 1: how do you encourage it? And we've incurred, we've tried 137 00:07:49,280 --> 00:07:52,640 Speaker 1: to encourage that every way we can here the Cleveland 138 00:07:52,680 --> 00:07:57,840 Speaker 1: connect to begin to drive that out into the the economy. 139 00:07:57,920 --> 00:08:00,680 Speaker 1: The second part is that we need to have great 140 00:08:00,720 --> 00:08:05,040 Speaker 1: universities and bringing great intellectual capital to your city. And 141 00:08:05,080 --> 00:08:07,760 Speaker 1: so the medicine edds that go together are building a 142 00:08:07,760 --> 00:08:10,520 Speaker 1: lot of economies and cities where it used to be 143 00:08:10,600 --> 00:08:15,600 Speaker 1: steel and auto parts. Now, if you look at some 144 00:08:15,640 --> 00:08:20,560 Speaker 1: of the challenges facing healthcare, one of them, of course, 145 00:08:20,840 --> 00:08:25,440 Speaker 1: we're seeing, uh the exchanges closing down. A big question 146 00:08:25,480 --> 00:08:29,160 Speaker 1: marks now over the Affordable Care Act Obamacare. How is 147 00:08:29,200 --> 00:08:34,120 Speaker 1: that in any way affecting Cleveland, the region, even the 148 00:08:34,160 --> 00:08:37,440 Speaker 1: Cleveland Clinic. Well, I think it's affecting health care across 149 00:08:37,440 --> 00:08:39,680 Speaker 1: the country. And what we realize that we need to 150 00:08:39,720 --> 00:08:42,600 Speaker 1: do is just be more efficient in how we deliver care. 151 00:08:43,600 --> 00:08:46,560 Speaker 1: So we realize that we have to take a really 152 00:08:46,679 --> 00:08:48,840 Speaker 1: over a billion and a half dollars out of our costs, 153 00:08:49,440 --> 00:08:52,559 Speaker 1: and so far, we've taken about seven million dollars out 154 00:08:52,559 --> 00:08:55,080 Speaker 1: over the last couple of years of our costs, and 155 00:08:55,120 --> 00:08:57,720 Speaker 1: we will continue to work on that. We need to 156 00:08:58,400 --> 00:09:04,560 Speaker 1: have our be more accessible for our patients and to 157 00:09:04,679 --> 00:09:07,480 Speaker 1: deliver care in a different, more efficient sort of way. 158 00:09:08,000 --> 00:09:10,400 Speaker 1: The other part of that is, clearly, if we're going 159 00:09:10,440 --> 00:09:14,000 Speaker 1: to have an economy that pays less for its health care, 160 00:09:14,040 --> 00:09:17,080 Speaker 1: we have to put a major emphasis on keeping people well. 161 00:09:17,760 --> 00:09:21,280 Speaker 1: Um and happily we have been able to do that 162 00:09:21,360 --> 00:09:24,680 Speaker 1: in our eight thousand dependence here at the Cleveland Clinic. 163 00:09:25,400 --> 00:09:28,760 Speaker 1: We have seen our health insurance costs in fact, go 164 00:09:28,920 --> 00:09:31,360 Speaker 1: from inflating at seven a half percent a year to 165 00:09:31,440 --> 00:09:35,400 Speaker 1: actually hit it down now. Uh So that's been through 166 00:09:35,400 --> 00:09:39,640 Speaker 1: a lot of wellness and yeah so in terms in 167 00:09:39,760 --> 00:09:41,960 Speaker 1: terms of the costs. Though as a as a patient 168 00:09:42,000 --> 00:09:45,880 Speaker 1: who has a good health care insurance, I'm sometimes frustrated 169 00:09:45,880 --> 00:09:48,480 Speaker 1: by how difficult could be defile acclaim codes and all that. 170 00:09:48,520 --> 00:09:52,000 Speaker 1: I'm sure on your end, regulations and so much paperwork 171 00:09:52,000 --> 00:09:54,120 Speaker 1: people have to employ staff just to do that. Is 172 00:09:54,120 --> 00:09:56,400 Speaker 1: that too heavy handed by the government or by the 173 00:09:56,400 --> 00:10:00,240 Speaker 1: insurance companies? Well, we we are reporting now over a 174 00:10:00,320 --> 00:10:04,199 Speaker 1: hundred uh quality metrics to the federal government. In fact, 175 00:10:04,240 --> 00:10:07,000 Speaker 1: if you look at the Affordable Care Act, there's sixteen 176 00:10:07,080 --> 00:10:10,200 Speaker 1: thousand pages, which stacked up on top of each other, 177 00:10:10,320 --> 00:10:13,480 Speaker 1: come to seven feet tall um in the number of 178 00:10:14,040 --> 00:10:18,280 Speaker 1: regulations and that are have now been put upon us. 179 00:10:18,280 --> 00:10:22,760 Speaker 1: So this is a very big issue. Uh, there's no 180 00:10:22,920 --> 00:10:27,360 Speaker 1: uniformity of insurance companies having what their quality metrics are. 181 00:10:27,440 --> 00:10:30,400 Speaker 1: They're not the same as the governments and we really 182 00:10:30,480 --> 00:10:34,760 Speaker 1: need some relief from that, some standardization. Well, thank you 183 00:10:34,800 --> 00:10:37,280 Speaker 1: for taking time for us today. We really appreciate it. 184 00:10:37,400 --> 00:10:41,920 Speaker 1: Toby Costgrove Dr. Costgrow is president, CEO and director of 185 00:10:41,960 --> 00:10:44,840 Speaker 1: the Cleveland Clinic, one of the big drivers of the 186 00:10:45,080 --> 00:10:50,040 Speaker 1: Cleveland economy. Yet ready, she's coming up in the next hour. 187 00:10:50,360 --> 00:10:54,760 Speaker 1: Laretta mester Ore Exclusive interviews. She's president of the Cleveland Fed. 188 00:10:55,000 --> 00:11:03,000 Speaker 1: I'm Kathleen Hayes. This is Bloomberg. Bloomberg Taking Stock is 189 00:11:03,040 --> 00:11:05,600 Speaker 1: brought to you by Commonwealth Financial Network. When it's time 190 00:11:05,600 --> 00:11:07,760 Speaker 1: to change a conversation, talk with a broker dealer R 191 00:11:07,960 --> 00:11:10,280 Speaker 1: that's ready to listen, call eight six sixth or six 192 00:11:10,320 --> 00:11:12,400 Speaker 1: two three sixth three eight or visit Commonwealth dot com 193 00:11:12,440 --> 00:11:12,959 Speaker 1: to learn more.