Bloomberg Businessweek Weekend - February 29th, 2020

There was a lot going on. Another ongoing story Hewlett Packard and whether or not they'll do a deal with Xerox, and they came out HP specifically came out with their earnings. But Jason, they also announced a massive fifteen billion dollar stock buy back and that was seen as a way to fend off that hostel takeover from zero. So we have a story by Austin Carr about that. Plus we catch up with Rebecca Greenfield. She oversees all of our

diversity coverage. She talks about a story she has in the magazine this week, as well as news of the week, obviously the sentencing the conviction of Harvey Weinstein, plus reddits traders man, they are shaking up the stock mar Get this story by Lucawa. It's the cover story, and it takes us to a dingy corner of the internet. He went, So, we didn't have to, but let's begin with global markets. They were rocked by the spread of the coronavirus. This week we take a look at how Wall Street is

looking for the right metaphor for the meltdown. Economics editor Christina lynn Blad and Market center Mike Reagan joining us now with two stories of the magazine this week, and it is all about the virus and trying to figure out the economic impact and also the market impact. Mike, we gotta start with you because we haven't seen this type of global equity sell off in some time. You're right, it's looking like right now about the worst sell off

since two thousand and eighteen. And what I wrote wrote about is how it's very much calling into question what was kind of the narrative behind this pole bowl market, which is the so called wall of were In other words, you know, we were hit with the European debt crisis, we were hit with the tensions with Iran, the the trade war, and investors really love these sort of little metaphors and cliches that that boiled down a complex market into a simple notion like, oh, it's timing a wall

of worry, and it would be a dead cat bounce right right. I know you guys hear these metaphors every day to take the stairs up in the elevator down,

and and they're all kind of applicable right now. But I think it's important, especially now because Robert Schiller's out with a book actually the magazine excerpted not too long ago, called Narrative Economics, and it's it's basically about the notion about how these little narratives and the metaphors, uh, sort of are more important than you think in sort of dictating where the economic trends, where the market trends go.

And I wonder if we're at an inflection point right now where that wall of worry made everyone a little too complacent that the Federal Reserve other central banks were there, they had our back, uh, and that it was safe to keep buying despite the scary news. Now this epidemic is much different because it's not clear what really a central bank can do seem sort of counteract this both

a demand shock and a supply shock. So it's it's one of those inflection points where I think a narrative that the market had rallied on for a long time is in jeopardy of just being going up and smoke. Well, because part of what everyone needs to figure out central bankers included, and investors Christina Lindblatt, is what is the economic impact here? How do you measure it? How do

you assess it? Well? Economists are also looking for stories, are going back in history and looking for episodes like this that they could use to model what the global economic impact could be. So, you know, we had the Spanish flu that was obviously one of the worst episodes.

Fifty million people I believed to have died. We had the swine flu, so right now the World Health Organization has stopped short of calling it a pandemic, but people, there are people out there modeling a result of a pandemic, and we've seen, for example, Oxford economics say that could be one trillion of global output wiped out from an

event like that. Yeah, And I think it's interesting, especially when we talked about in some parts of the world there were economies that were struggling before the buyers right, and whether or not this really tips them into recession Italy certainly, and Italy could tip other countries in Europe

into recession. And also, you know, we were starting to feel better about the global economy because Rexit was receding, the trade wars were receiving a bit, so that it was like the expectation as was going to be a year to rebuild, and that is now really off the table. Well, and Mike, obviously, the markets were paying very close attention this week to what the President had to say about that. We know the markets are always front of mine for him.

Politics and governmental response, especially here in the US plays mightily into the market story here, right. And President Trump's his own narrative has has been very influential on the market since he was elected. Obviously, you know, he's very much a cheerleader for the stock market, for the economy. But this is a story that is kind of out

of his control where he cannot. He's trying very hard to control the narrative around the market, trying to keep that confidence high, trying to get people not to panic, but it's one of these occasions where it's simply largely out of his control as far as how far this spreads UH, and you know, if we're really do for a China type of situation where we see quarantines in the US UH and and more quarantines in Europe, that will really just snuff out the economic growth that's so

important for the stockmark. Well, I think such a narrative for a long time was everybody saying it's not gonna be such a big deal, certainly in developed markets, and we started to see that play out. In fact, it played out in the debates UH this week that we saw among the Democratic candidates. They brought that front and center, and I feel like all of a sudden it picked up a lot of momentum here in the United States

and the impact absolutely absolutely know. For a long time it was interesting when the case the cases really we're swelling and getting very serious in China. You know, the whole market narrative was that, well, it's contained the China, UH, it's not going to make it here, and clearly obviously it's leaked out of China. UM. The issue in the United States now is I don't think there's a lot of confidence in what we know about the virus state.

CDC hasn't really been testing that many people. We know, there's this one case in California that they call you know, spread through the community rather than someone that was brought back from from Asia. So there are a lot of uncertainty and a lot of sort of questioning of authority of what we're really dealing with right now. One last question just quickly, China. Though it feels like we're getting maybe some containment in terms of the cases, but the

economic impact. Do we have a better feel on that, Christie, not really. I think the number of cases are slowing down, but there's a particular concern. You know, at a lot of large companies people have returned to work, but smaller and medium sized uh, you know, workers in some cases are stuck back home because they went home for the New New York holidays. That's Christina, Lynn lad and Mike

Reagan giving us the coronavirus story really in two ways. Obviously, economists and investors and everyone else trying to figure it out. I feel like if there's a theme this week, it's about these stories, whether it's the virus, the market, so many other things, Hewlett Packard, It's all about kind of stories that aren't quite over yet, right and we're not

quite sure about the ending there. So the week it off to a rocky start investors nervous over the spread of the coronavirus, and as more companies weighed in on the impact. Jason meantime, love this story. It's about a dingy corner of the Internet and a Reddit forum with nearly a million users that's apparently become pretty much a force in the stock market. Soaked in profanity and greed. It's my favorite phrase in the magazine this week, Luke Kawa wrote it. He joins us in New York City.

This is quite a little place that maybe people don't know about, that has a huge amount of influence on individual stocks at times. Yeah, this has been one of the fun new developments to track in because for years we've talked about, like one, is the retail investor going to get involved with the bowl market? Uh, you know what, are we going to have that kind of late nineties

type explosion in retail activity? And it didn't quite happen maybe the way we might expect, But it's really happening in the options market, and it's happening via a lot of the companies that how a high nominal share price, So you know, your Tesla is your Amazons of the world.

Perhaps retail traders cannot actually afford to buy a single share of those names, but you can kind of buy options at pennies on the dollar and make these moonshot bets that increasingly we're paying off and spurring a lot of other recommendations for moons moonshot bets. Well, take a step back, tell us about this forum. It's on Reddit, so remind everybody what Reddit is and what the forum is specifically and what's being talked about. So Reddit's kind

of your your your classic internet online forum. It's divided into approximately a zillion subreddits where you deal with you know, every subject it has, you know, uh subjects. For one of my favorites is the Spoiled Survivor. I gotta I gotta find out if there's any intel about how that season is going to go. A forum for everything, for everything,

for everything. So they also have this forum called Wall Street Bets, and it differs from Our Investing, which is another subreddit, and that these people are not aiming to take it as seriously. It's just really for this kind of this wild card craze, the action this shoot by the hip type of opportunities they see trading, and you know, there's a lot of a lot of profanity, as Jason alluded to a lot of lud language. It's definitely not PG thirteen rated. We can't talk about exactly right, some

of the vulcarity. Yeah, there's not a lot of screenshots I could be able to post, but there's also a lot of like very smart, intelligent commentary that does seep through the cracks. I guess, So, Luke, help us understand how this works with the use of options, because you have a nice line in the story. They just get they believe they've discovered a kind of perpetual motion machine in the interplay of stocks and options. You alluded to this with the price of stocks, But how does this work?

Because people really are by all accounts making money doing this, So the the interesting way to look at it or what they appear to think they've discovered. And unfortunately this came from something I wrote earlier on Tesla options and just kind of the the dynamics is that if you want, you know, if you want a fresh call option, what you'll have to do is, you know, you buy it from a dealer, a dealer is not in the business

of taking directional exposure. So as soon as the dealer writes that call, the dealer is taking the other side of your position. The dealer is the facto short tesla. So what the dealer needs to do is by the the delta equivalent to get into the Greeks. We won't go too far, but by the delta equivalent amount of stock that corresponds to your call purchase, to make sure they're neutral, to make sure that if the stock goes up, the dealers protected. But if the stock goes up, the

dealer does have to buy a little more. And this kind of this managing of your delta hedge is the way in which this community saw themselves as always having a get out of jail free card, is always having the greater fool to come and step in. Like in the late nineties. You just have to imagine it was there, and now they've invented a mechanism by which you know this can actually happen as long as we have the courage of our convictions to buy as many call options

as humanly possible, especially in smaller names names. A lot of short interests relatively a liquid names we're going to be able to kind of force this this gamma chase on the part of dealers. Let's be specific and give an example, like I think you've wrote a story that Virgin Galactic, for instance, really wasn't on anybody's radar until these guys started talking about it. Virgin Galactic a crazy story. I think the the best example though, out of the list,

would probably be lumber liquidators. So that's, you know, that's not as much of a story stock that you can get behind as you know, electric cars or a space travel, space tourism. This is really really kind of plain fair. But what was discovered is that somebody on this message board who had not posted but had been a member for three years, laid out this very elaborate, lengthy at least I I can't go into the commentary and how good or not it was, but lengthy, long thesis for

lumber liquidators. The next morning, call volumes and lumber liquidators. I think they were something like seventies seven times the twenty day average. This was the only source of anyone talking about lumber liquidators at all, and that user was subsequently banned from the subreddit because even Wall Street bets said, Hey, like, we have to police our turf here. We can't let this be a ground for pure kind of pump and

dump type scheme. You know. One user lamented, I wish we could just go back to losing inordinate amounts of money, because that's what you know, that's the history of of what Wall Street Bets has generally done on all of these kind of crazy calls. So where does this go from here? Luke? I mean, is this something that ultimately the SEC takes an interest in that other market regulators may examine, or is this, ultimately, as you alluded to, going to have to be self policed as so much

on Reddit is. I I could see a case for regulators maybe getting involved. I could see a case for regulators thinking this is too small ball truly get into. And you know, the the activity does appear to have been relatively coordinated. I'm not sure how much of a different settle make, but I think the stepping back the big picture where does this go from here? That we should care about is the amounting evidence that you know,

this is no free lunch here. There is no perpetual money machine just because you have the courage of your convictions and are loading up on call options. That doesn't mean somebody else who's a heck of a lot bigger is taking the other side. And that doesn't mean something like escalating concerns over the coronavirus can come in and

just completely flip the table on you. Just the idea that we've been learning over the past few sessions is that, you know, perhaps retail, although it's exerted immense power over parts of the market this uh this year, maybe isn't always the the end all be all well. And I think that's what's interesting, right, Whether what this says about we've been constantly talking about the retail investor coming back

to the market. Is it a sign just like the day traders of the nineties and you know their chat rooms right and talking up trades. Is this a sign that the retail or individual investor is kind of coming back to the market most most certainly you see it a little bit on the on just the pure equity flow side. Julian Emmanuel's at bt I has said, you know, February, retail is back. I'm seeing it in the flows. Where you're seeing it much more though, is in the options market.

And one way to look at this is the average size of an options trade has gone down to just six point seven contracts. It was about twice that just a few years ago, so pretty rapid shrinkage. That's Luke Howa, who follows the stock market for us. The story in the Finance section of the magazine. But it's fascinating. It really just take us back to the nineties when we had day traders and they could really create kind of a story or a narrative in the markets. And this

is kind of version of it. Right. It's answers the question what happens when you know sort of weirdos in the stock market get onto Reddit and the answer is a little bit scary. Yeah, absolutely so. News this week about HP pledging to buy back about fifteen billion dollars worth of stock, why, we'll safe to say it made shareholders a lot happier and it could potentially help fend off a hostile takeover from Xerox. But there's so many moving parts to this. Writing about Xerox and the HP

battle this week is Austin Carr. He joins us right here in New York. It is a bit of a battle and the story is still being written. Although you had to write about it kind of where we are so far this week? How did you approach it? Well, there was just so many moving pieces within the last

couple of months. So Enrique Laura's who's the CEO of HP, only came in November to the role, but that seemed like ages ago because they had a thirty five billion dollar hostel take over a lot of pressure from shareholders and activist investors like Carl Icon, who owns a significant stake in HP, really pushing them to merge with Xerox, which is this photo copy or giant, a hundred and thirteen year old company, and HP has sort of been pushed up against the wall to say, what are we

going to do to fend off this acquisition or merger and how can we just impress our shareholders enough to remain independent. It's such an interesting story, such a kind of I feel like old time historical battle because you've got kind of you know, corporate raider, activist Carl Icon, he owned shares of both. I think he owns more of Xerox right in terms of a position, he has been pushing to get something done and he doesn't really necessarily care of Xerox by is HP or HP by Xerox.

It feels like that's correct. The one thing he has signaled is that he would prefer xerox is management to to keep managing the company if they did merge. But he just wants a merger. He thinks there's a lot of synergies. You know, when you hear the word synergies, it's probably bad. That just means cost efficiencies, layoffs, things like that. They want to find overlap and there are areas to be fair where it might make sense, where areas that Xerox is stronger in versus HP and vice versa.

But overall HP is a massive player. You know, this is a guard sort of colossal giant compared to Xerox, which is very tiny. But these are arguably two of the biggest innovation labs of the twentieth century, and it's really interesting to see them fight over essentially printers today. That's what I want to talk about. One last thing though, in terms of the news this week, I mean HP, with announcing earnings, announcing that buy back, they did also kind of keep the door open that they're open to

maybe doing some kind of deal. Correct, Yes, that that's correct. So HP, basically I wanted to walk a fine line. They as you mentioned, they announced fifteen billion dollars and buy backs over the course of three years. They promised to really ramp up cost savings. And then they also to you know, we're open to talking about Xerox. But on the earnings call and after when I talked to Enrique, they wouldn't go into specifics. They would just say, hey,

we're open to it. But I think that's just because they want to remain flexible and case shareholders don't really like this plan or the market didn't respond to it. Well. These were companies that were revered, especially HP if I think about it, but Xerox too for their R and D and being kind of at, you know, the front

wave when it came to technology. Absolutely. I mean, if you look around your office right now, or your phone or computer or whatever, most of those technology gadgets innovations probably started with with Hewlett Packard, which was found in n It was the first garage startup in Silicon Valley, as well as xerox Polo Altar Research Center which is known as Xerox Park, and that's where Bill Gates and Steve Jobs went to found the graphical universe UH user

interface that ended up in Windows and Mac operating systems that sparked the PC revolution. And these were the two pioneering innovation labs of the twentieth century that you know, everything from from Google X to Amazon's Lab one to six is sort of modeled themselves after, as well as every girl startup in San Francisco. UM, so it's really fascinating to see them go from that to just over the past decade or two, really narrowly focused on photo copiers,

printers as well as ink. That's really their lifeblood. Well, and what's funny, Austin is and you put some numbers to this, I mean, printing is still a big business. It's it's really insane. I mean, you know, I do work for a magazine, so we're glad print is still around. I print a ton of stuff to you. But I d C the research firm estivates there's about three point two trillion pages printed every year. So just think about how many printers that takes. Just think about how much

ink that takes. And and that's really where these big profits fe I mean, if I'm sure you've had the experience of going to Staples, everyone is frustrated with that, but you also got to think these printers are super cheap. You can get like a really high end printer for about sixty bucks, but then you're gonna pay thirty bucks for cartridge every two hundred pages, depending if it's color or black. Uh. And that's where the HP makes a

huge amount of its process. That the printer division actually represents sixty of its profits and brought in about twelve

point nine billion dollars last year. A significant amount came from incntner of all things, not exactly the most forward thinking thing, which is really funny when you think about the split up when Meg Whitman split up HP Hewlett Packard, right, and there was kind of the old business, the printing business, which nobody thought was going to do well, and then it was kind of the forward looking business, right um,

and that was the business that kind of struggled. So it's interesting to see how this has kind of played out. It's really fascinating. I mean, I remember back to that that period in Meg Whitman essentially took the cloud and AI and consulting parts of the business, which are the quote sexier parts. I mean, if you talk to everyone in HP they admit that that was this sexier stuff to take. And HP Inc. Which is the was stuck with the printer and PC business which were at that

time scene is just dying. And then they had this turnaround which was partly red led by their their current CEO who used to lead the printer division. Sales shot up between two thousand and sixteen and two thousand eighteen, the stock shot up, PC sales even rose during that time. And that's Austin car his story with Nico Grant. It's a must Reid in this week's magazine because day the snapshot of as you said earlier in the show, Carol,

this ongoing story. We don't even know how it's gonna end, and even the players in the midst of it, like Carl Icon, they have different ideas about how they want it to end. And I love the line in the story. It's like hard to fathom that these two companies are where they are today because if you think about how many decades ago they were temples of engineering those at Austin's words, it's perfect, and then this is where they are today and they're struggling to figure out the future.

I sort of want to tell my nineteen eighties self about this story. We're related to hew Litt, Packard and Xerox. This week, Harvey Weinstein we got a verdict. Weinstein was convicted of rape and a criminal sexual act, more than two years after allegations against the former Hollywood power broker really sparked the me Too movement. Now, Rebecca Greenfield, she is in charge of our diversity coverage here at Bloomberg News, and she and her team have been all over this story.

It did. First of all, it was just two years ago. It feels like so much has happened. It feels like an eternity sometimes and then you look back and you're like, wait, bo was only fall to the seventeen. I have to check myself every time we write these stories. But yeah, those two years feel like a lot has changed. Because

a lot has changed. Well, let's talk about that because I do think, um, and it was Harvey Weinstein and then other cases that came out, and I do feel like companies are less tolerant when they find an executive or senior executive and there's something that has gone on that is either harassment or just doesn't seem quite right. Like sometimes you get you know, the executives are out, so tell me, let's go through what's changed specifically. Yeah,

So twenties seventeen happened Harvey Weinstein. All these allegations came out and something different happened, which is people were shocked and appalled and actually cared and that led to more similar allegations. And the thing about the Harvey Weinstein allegations is there were a lot of them against him, over a hundred. So that happened to lots of powerful people where there were multiple people coming out and saying this person's actually asked me or assaulted me, or was inappropriate.

And I think the sheer volume of accusations against people, and then the sheer volume of people that were accused of things kind of led to this reckoning about what is going on in our workplaces. Well, let's talk about that, because I do think you know, among the things that you cover in a story that's at on the Bloomberg and Bloomberg dot com, you talk about things like by standard training in the workplace, And I think this is

an important one. Right, it's not just the individual who does the act, but it's also those who are aware of it. Right, Yeah, So awareness has definitely changed in the workplace that sexual harassment happens and it's not okay, and there have been shifts both UM and formally and informally, so I would say formally as this by standard training that you're talking about, UM, more employees than ever undergo mandatory sexual harassment training, but also the type of training

has changed. So by standard training focuses on training people in the workplace who aren't necessarily involved in the harassment to see it and to notice that, and people to identify it and to be able to know who to contact and what to say. And researchers found that is more effective than just the kind of training that we all know where it's like this is sexual harassment, don't do this, this happens to what's wrong. Don't do this,

you might get fired. There's also some things like a Weinstein clause, right, and this is an M and A deals tell us about that. Yeah, So there are these things called the Weinstein clause, which is in M and A deals where they basically protect the buyer if something happens like somebody important like say the CEO or the chairman UM, gets gets called out for sexual harassment that the buyer can recoup some of those lasses because there are severe reputational damages that come in the era of

me too. One of the things that I just want to go. Um. One last thing is things like n d as, nondisclosure agreements or even arbitration, which we've seen in a lot of companies, certainly in the financial community, technology community, that really prevent when something happens for it being you know, put out to the wider public. That's

slowly going away. Yeah, I think these what we're considered standard tools, um, you know, ways to just handle harrassment claims, are now being seen as ways to cover up harassment claims, especially for repeat offenders. So the non disclosure agreement is definitely under scrutiny. UM. Bloomberg LP and Conde Nast just last week said that they were going to stop using them for sexual harassment claims. Some other organizations have let people out of their non disclosure agreements so that we

can really get some sunlight on these accusations. UM. I would say forest arbitration is the other really big change. Um. You know, it's it's a dispute resolution process that lots of companies use for lots of things, but in sexual harassment claims. It's again seen as this way to litigate these claims behind closed doors, and that again if there's

a repeat offender, nobody's going to hear about it. So multiple companies Facebook, Alphabet, Um, and recently while as Fargo have said that they won't use that anymore for sexual harassment. Bloomberg change came after my Go Bloomberg was criticized in a Democratic presidential debate for their usage. Now, he also said he would release three women from nondisclosure agreements n d as with his company. Bloomberg, of course, is the founder majority owner of Bloomberg LP, the parent company of

Bloomberg Radio. All right, moving on now, Rebecca, there's a story in the magazine you wrote along with Cynthia Coon's. It's focusing on abortion clinics. You really go to what's going on in terms of running those clinics in the United States. Let's start with Amy Hags. John Miller tell us about her. Yeah, so you may remember her as the face of a victory in front of the Supreme Court four years ago or less than four years ago

um homewoman's health teller status. She won a five three decision that overturned this Texas law that sad doctors had to have admitting privileges at hospitals nearby if they were going to perform in abortion clinics. And she won that case. That case had closed her clinic because that it's a really almost impossible standard for abortion doctors to meet because they don't actually send very many patients to hospitals, so it's hard to get privileges. Um and it closed her clinics.

That closed a lot of the clinics in Texas, and so that was a big victory for her. You might remember the time, it was a big victory for abortion rights activists. Yeah. And then and then you know, we checked back in with her. You know, she opened back up one of her clinics that closed, or some of

her clinics that closed. And this Austin clinic Um was targeted by anti an anti abortion group that basically forced her out of her lease where she had been for a very long time by offering her landlord a big commitment of five year commitment saying we can we can pay you for five years, and the landlords that I can't. Can you match that? And she said, I don't have the money, So it forced her to move out of this space, effectively shutting her down again for reasons that

had little to do with the laws. And this was interesting. It was in Austin, which is considered a much more liberal city. Yes, definitely. I think we discovered that a lot and are reporting a lot of the issues that clinic space aren't in areas that we considered to be particularly hostile to abortion. I mean, Austin is in Texas. But she so she had to find a new space, and she said it took her nine months and she toward eighty places because people didn't want to be in

the business of abortion, even in Austin, Texas. Well. She talks about she's coined this phrase an abortion tax. Tell us what that is. It's not an official tax, right, but in essence, it is during business. It's something we discovered and she had this great way of phrasing at the abortion tax, which is added fees or costs or burdens that just because you're in the business of abortion, you have to pay. And that's things like spending a bunch of months and a hundred thousand dollars to move

because somebody forced you out of your lease. That's things like, you know, a window washer is not going to work with you because they they're telling you that, you know your window none knows are too old. When this abortion provider said, I can read between the lines, they just don't want to be in business with me. Or having to find a waste management company that's not being targeted by activists, because the ones targeted by activists they don't

they don't want to be in that business. And so it's just this litany of expenses that add up making it really difficult, if not impossible, to stay in the business of abortion. And that includes you know, you've got greater security costs, but you also have insurers who don't want to do business with you anymore. Yeah, we discovered this this interesting thing that was happening with insurance. And this is business and insurance. So workers comp property insurance,

we're insurers. We're saying, you know, we've decided we're not going to renew you anymore because it's they've deemed them to risk. Essentially, an abortion clinic in many ways is a small business, but this is like a whole other layer on top of it. So what has it meant, um Rebecca, in terms of we have less abortion clinics. There are fewer independent abortion clinics about you know, a third fewer since twelve in the US. And also there are fewer abortions in states that have been the most

harshly targeted by abortion restrictions that close clinics down. So there's definitely some some trends that we can point out. Do you guys have some great statistics in there that this is happening, And this is at a point where if you survey most adult right, they are in favor

of having an abortion option out there. Yeah. I think my understanding of abortion too was we talk a lot about Roe v. Wade or these big Supreme Court cases, but if you get on the ground, there are so many other issues that clinics are facing, or that women who want to get abortions are facing, that really have little to do with Roe v. Wade. And I think that's that's what our story, my hope shows. Okay, but

didn't to go to the Supreme courts. There's another case right coming up this summer and what will that ultimately decide. In March, the Spoon Court is going to start hearing arguments for a case about a Louisiana law that is nearly identical to the law that shut Amy Hackstra Miller's

clinic down. Basically, they're going to be deciding if that laws okay in Louisiana, and if the court, which is now more conservative than it was when Amy was in front of it, decides in favor of the law, that will close clinics down in Louisiana, and then potentially other states are going to pass similar laws which could potentially close more clinics down, and you can basically go from there and see what happens to um these businesses and

the women who want to get abortions. That's Rebecca Greenfield, who manages diversity coverage here at Bloomberg. Two stories, two different stories, and so bring one about abortion clinics. You would think at this point, how many decades after abortions were made legal, that it would be easier to run

an abortion clinic. It's not. So we're seeing things kind of slide back on the other and with the Harvey Weinstein and the Me Too movement, we have made some progress and there have been some changes in the workplace. It's a really important pair of stories, as you say, and grateful to Rebecca because she really does summon up

really nicely. Let me throughout some numbers for you. More than eight two thousand, four hundred coronavirus cases they have been reported, with more new cases being reported outside China than within the country for the first time, highlighting the spread of the epidemic. Now, the first US case of the virus was confirmed in Washington State at Providence Regional

Medical Center in Everett. That hospital is part of the twenty billion dollar Providence St. Joseph Health System, which includes fifty one hospitals, more than eight hundred clinics, and a hundred fifteen thousand caregivers. Dr Amy Compton Phillips is chief Clinical Officer and executive vice president at Providence St. Joseph Health Health and she joins us on the phone from Everett, Washington. UM. Dr Compton Phillips, nice to have you here with Jason

and myself. So how do you now prepare for maybe what expected in the US and what are your expectations for the virus spread here in the United States. Our expectation out here is that this virus is now circulating in the community and we need to be prepared for for in fluxipations with symptoms UM, and so that includes making sure that that UM all of those access points in the community, so doctor's offices, we have express care clinics and Walgreens, we have urgent cares, all of those

need to be prepared for people with symptoms UM. So we're really revving up our capacity not only to take care of patients when they come in, but also our online capabilities helping people have access to care through phone and through video visits so that they can get care from home and minimize the risk of transmitting the virus

further UM. And then in our acute care hospitals, we're making sure we're prepared not only to keep patients isolated as we need to with any person with infections with that can be transmitted through respiratory droplets UM, but also who may need more intensive care so with respirators and ventilators and and more acute services. So it really is an all out attempt to make sure that we're ready and able to care for patients should this get significantly

out of control. So Dr Cometon Phillips obviously there's a whole lot of information, a lot of misinformation out there help us understand just as sort of human beings in the world. What should we be doing? What are you advising folks to do to to minimize it, but but also to sort of deal with this as this potentially spreads. Sure, well, I think the key thing is right now, don't panic. One case does not mean, you know, we have an

epidemic here in the US. Um it is like a very bad flu bug and people we've been dealing with the flu, and nobody is afraid of the flu, right, um So, is this much worse than the flu? I think that's what we're trying to understand a little bit. It is a more severe version. Um So. It causes very similar symptoms. It causes fever, headache, cost, shortness of breath. Um it's just so far in the statistics out of China, which we'll see if they play out here in the States.

Um that of the people who get this infection about get a severe case. Um So, it goes from from the average blue symptoms to having a cause of severe in short espprest of severe you actually need supplemental oxygen um and in two and a half percent around the more between two and three percent of cases, it gets so severe causes death. Um So, one in five patients getting this infection in China needed needed much more acute treatment and that's significantly worse than the flu statistics of

those years. Um. So it is like a very very virulent proof. One of the challenges is that, um, you know, most of us don't have antibodies to this version of coronavirus, and so being a novel infection, there's not any kind of what we would call herd immunity around where people are are more resistant to this term. And so you described a little bit of what you guys are doing

at your facilities. UM. You know, what should people expect if they go into a doctor's office or a hospital in terms of how they may be quarantined or how they may be treated. Yeah, what we have been doing up until yesterday, UM is asking about travel history and and if you if you have been traveling, we've put

been asked on you in h year isolated. If you're traveling and have symptoms, we would also um uh put you in an specific kind of isolation rooms, including negative pressure rooms, so that we could do a test safely and send that test off to the CDC um or or to the state Department's depending on where we are if the state department has capacity UM, so that we could actually do this new test for for COVID nineteen UM.

That said, now that now that we have at least one confirmed case in the US, UM, we're working with the CDC and with our departments of health in each state to say how broadly do we need to be testing patients here on the West coast, which tends to be UM ground zero for infections that are coming over from the Pacific RIM. I mean, have we learned something from treating that first patient that you guys UM that actually was in your hospital system. We have. We've learned that.

One is that in our first patient and now we've treated several patients, but in our first patient, he actually didn't quite well for several days and then took a turn for the worst UM. And so we know that we can't just we can't just write it off and say you're going to be fine. We actually are are being a little more cautious and watching people so we

know what the natural history of this new disease looks like. UM. And the second thing is that we were again in conjunction with the CDC and and UM several several of our national International experts UM. We were able to get him access to an experimental drug which made a big difference in his care. And that's Dr Amy Compton Phillips, the chief clinic co officer over at Providence St. Joseph Health. I mean, this story, we talked about it earlier. It's

obviously a market story, it's also an economic story. It's also a human story, and we're all trying to figure out how to deal with this. It's already the world's largest retailer, but did you know that it also already has a thirty six billion dollar pharmacy business, Jason, and now it wants to move more into the healthcare business. We're talking about Walmart, and this takes us very close to my hometown of Atlanta. Down there in Georgia, a big experiment going on there in the ex serbs, I

guess you would call them. Matt Boyle went there. He covers all things Walmart for Bloomberg. He joins us in New York City. So what do you find there? I found a really interesting business story, Jason. It's really funny. I mean, Walmart already has, as you said, a big healthcare business there. The four million prescriptions a year, thirty six billion dollar business, but they want to get deeper into healthcare spending. It's three point six trillion dollars of

spending in this country. It's disorganized, it's confusing. Nobody likes, you know, paying for healthcare. They don't know what they're gonna pay. Walmart's like, we can bring, you know, some clarity to this, were Walmart, So let's go ahead and do it. What's interesting Matt and Jason? I thought, I don't know if you just jumped out of you as well, but I mean, Walmart already has a hundred and fifty million weekly customers, right, so think about that's their base

that they can already maybe tap into for healthcare. Exactly. They've got all those people going into their stores already. A lot of them are lower income, a lot of them are either uninsured or underinsured, or they don't like their healthcare plan. Walmart saying, hey, you're coming in for groceries already, it's a Saturday afternoon. Do you need you know, do you need a flu shots? Your kids sick? Do

you need a tooth a tooth cleaning? And the people they are seeing in these new centers now granted there's only two so far. The third one is going to open this summer. But the people they are seeing in these health centers, some of them have not been to

a doctor or a dentist in over a year. You know, this is not a totally new concept, and I think about what's going on at CBS specifically, uh, you know, in some of the other big boxers or I guess not big box, but but more the idea that the doctor's office is moving into retail in a lot of ways. So they're not alone here. Yeah, they're certainly not alone here. CVS is going very heavy into this as well with their new health hubs. They want to have fifteen hundred

of them by the end of next year. But this is really rethinking retail healthcare. The problem with the care clinics, or minute clinics, as CVS has called them. They've been around, yeah, over the past decade um, but they're cramped, they're small, and the problem on the retailer side is they never see enough volume to justify their fixed costs. So for that reason, Walmart has had these for the past six years, but they only have nineteen of them. With these new

health centers, they are really blowing it out. These things are six thousand, seven thousand square feet, twelve exams rooms you know, I Care dental. If you can't hear the doctor, they'll send you in for a hearing check even I mean, and then of course when you're done, they move you right out to the pharmacy. Well, tell me how this works. And that's what's amazing. They're big centers. As you said, you can have your teeth clean, you can get counseling.

Let's say, have anxiety problems or other problems. Um, when a lab test on Sunday. I would love that. It's a little bit more convenient. How cool. They don't take insurance right, and they've got a price list they will, but they are guessing most people even if you have insurance, right, Um, if you don't want to deal with the copays and deductible as you might just pay the flat cash fee. So when you're signing up for your point and you do tell them I do I have insurance or not?

Am I in medicare and they will adjust for that. But for a lot of people they might just say I'll just pay the twenty five bucks flat flat cash fee and not have to deal with with Etna or Blue Cross or whatever. Um So for the insurance companies, they're probably thinking, you know, um so, yeah, it's Walmart is really you know, disrupting the health care sectory? What

about that price list? And I am curious, right, I don't know if you thought about this, Jason, I think about I see, you know, the insurance claims and what things you know, supposedly cost and then what they've kind of uh negotiated right um with the provider. So what is the price that wants to simplify all of that? You walk in is a huge digital billboard just saying here's all the prices. Teeth cleaning is twenty five bucks. Mental health a dollar a minute. I mean, that's a

real interesting one. There's a lot of these retail healthcare clinics historically have never provided mental health. And often you walk in, Let's say you get a physical check up and the doctor notices you're really anxious or maybe you've just been diagnosed with diabetes. You're worried. They can send you right over to the next exam room for people.

You know, you'll get the counseling you need. Now. Of course any doctor will do that, but it would require you normally to book another appointment with a therapist, and then who has time for that? And a lot of people wouldn't end up following through. But at Walmart, they just shuffle you into the next exam room. And I think that model will work for a lot of people. And so, Matt, I believe this is not their first go at this, right, They've experimented at least on the

on thergence here and it didn't go so well last time. Yeah, I mean, they've been doing this for some time. The original retail health clinics did not work for Walmart. They didn't really work for for anyone. Walmart has also been distracted by other strategic priorities. Remember they're their biggest retailer in the world. Uh. In the intees, they were building out supermarkets in the food business, and over the past five ten years they've had to build out their e

commerce business to battle Amazon. So healthcare has never been a real strategic priority for the company until now though, and now it certainly is. Well let's go there, because man, I feel like we're ignoring the elephant in the living room. I mean, there have been the cases of where, you know,

Walmart employees themselves weren't getting great healthcare. Um. It's an interesting company that you know, offers a lot of different things including cigarettes and guns, and some might say, well, wait a minute, they're trying to move, you know, much more to healthcare and it seems to kind of go against some of their history. Trust factor is going to be big here. I mean Walmart, yes, historically has never taken very good care of their associates on the wage

side and also the benefits side. There was an internal memo from two thousand five that leaked UM that really said that Walmart associates UM and their children, a lot of them were uninsured or on Medicaid because they simply couldn't afford Walmart's own healthcare plan. And Walmart called it a reputational issue, basically saying we're getting killed for this in the in the press. Now that was then, though, Walmart knows that they're going to have to overcome this

sort of trust factor. But for me, the question is this for a lot of people, it's not do you want Walmart to provide your healthcare? Is do you have to have Walmart? You know, for a lot of people that kind of they need it. Saturday Morning your kid is sick, you need a lab test. A woman I spoke to down in Georgia needed a lab test done on the weekend. Walmart was the only place open and it was ten bucks cheaper. She went in, got it done and oh, by the way, she filled the prescription

there too. She didn't normally do that. It's gonna build Walmart store traffic and their regular you know traffic as well, and that's good for them. Certainly, Walmart has to worry about Amazon here as well. Talk to us about that showdown. Amazon bought an online pharmacy pill pack a couple of years ago. They've been talking about drone deliveries. They have this huge consorttion with JP Morgan Chase and Berkshire Hathaway that's looking to reduce the cost of their own employees healthcare.

But not a lot has really moved forward this with that. Obviously, they've gotten a lot of headlines Walmart saying we need to play to our strengths. Our strength is our stores, our four thousand, seven and sixty sum stores in the US. And remember this is not just going to take place in the health centers. What's not in the story, but what Walmart told me, is they see this moving into

telehealth as well, basically healthcare in your home. They already have a division set up for this, that's the next step after this, and they're already doing it in their Sam's Club warehouse division with a company called ninety eight point six. All right, that's Matt Boyle, who covers all things retail for us here at Bloomberg. I always loved talking to Matt and his reporting. He went down to Georgia, he checked out what Walmart is doing in terms of

their health care centers. Well, Walmart already a big player when it comes to filling prescriptions, but man, they want to do even more well, and it's going to be a competitive space. The healthcare landscape changing pretty dramatically. Don't count Walmart out for sure. None of day goes by without a company talking about a green initiative. And Jason, that includes the big tech companies like Google, which this

story talks about. It's got commitments to environmental sustainability, and yet there's an element to it that some might say is not in keeping with the spirit of going green. Well, and this story feels so carol in a lot of ways because it's about big tech but it's also about the economy in the United States, small towns grappling with employment and really an existential question about their future. Jeff Muscus in New York with this story, tell us what

you found. This is an emblematic story in many ways. Yeah, the the small town of Becker, Minnesota has done about two things well for the past forty years or so, burn cole and pay taxes. Um. The the Scherko power plant, what locals called the Sherburn County Generating Station. It's about four times a size of your average coal power plant and produces enough power to to light up about half of Minnesota. It's also the the worst emitter in the region.

And so when when Google was looking around for places in the area to put a new six million dollar data center, part of the sales pitch, local and county and state officials and the local utility player, Excel Energy, was okay. In addition to the usual you know, raft of of tax breaks, the company's getting exempted from local

and county taxes for the next twenty years. Uh, they're also getting kind of sweetheart deals on uh their their energy bills and uh, you know, in ways that are going to help it offset it's carbon emissions by um, you know, burning this coal for the next ten years before they can push Excel to close the power plant earlier than expected. And in the meantime, UH subsidized some

of the cost of their wind power offsets. There's a lot of the story that I really love, and I feel like it speaks to the heart of this story. Google's arrival and Becker an object less than in the unique leverage that big tech companies outsize power needs um and what it gives them over local utilities at a moment when few industries power needs are growing. So this if you think about a Google, right, and maybe it's an Amazon, Pick anyone that's got huge data centers, right,

they need a ton of power to fuel these data centers. Yeah, as as you guys were just saying this, the story has been kind of a long time coming for the past fifteen years or so, as power needs have sort of flatlined across a wide array of industries, while the tech companies needs for these data centers increasingly all over

the country and the world have really taken off. You know, it's giving them a ton of leverage, you know, probably a unique leverage relative to that of other industries in wrestling with utility companies that you know, previously had been kind of the big dogs in these conversations. Right, So

it's big power versus big tech. But big power really needs big tech right now, right, Yeah, absolutely, They even utility players that are you know, local or even regional monopolies are seeing demand pretty flat across most other kinds of companies besides big tech right now, and so that that's adding pressure on local politicians and state regulators to you know, say yes, two deals that you know, in many cases are not as good for the local communities

as you know, the the kinds of power plant set ups they're replacing, you know, even though they're they're definitely markedly better for the environment. Well, let's talk about that specific issue, Jeff, because Google very savvy here. You know, we have come to learn, I feel like over the past few years that big tech has gotten very smart about figure out ways to get its own way and to get its own way to its advantage economic advantage.

They played this one pretty perfectly based on the reporting

that you guys did. Yeah, our reporter Maya Fraser found by you know, looking through documents and talking to folks there that you know, on the on the ground Google went in, you know, and as early as seventeen, you know, a couple of years before the deal was announced, you know, under the guys of a couple of shell companies, only revealing it's it's identity to the public on the very day that the deal was passed through by the Minnesota

Public Utility Commission. Uh, this is becoming kind of a dura groff for tech companies that are trying to um, you know, extract favorable terms for UH data center construction

and tax breaks across the country. But you know, again, this is kind of um, you know, uniquely just positive case as far as both the degree to which tech companies have power to control how the deals go and also power to control the narrative around them well and the and they know Jeff that basically and you have a local official essentially says this, like, listen, we would have loved for Google to come to town without all these incentives, but the reality is is that we're sort

of hoping over the next twenty years that it plays out to our advantage. They're they're kind of stuck. Yeah, and and a big part you know, you saw in the statement the commission and local lawmakers put out when the deal was announced last spring that you know they they they sigh. I did uh study commissioned via Google as one of the main you know, economic impact reasons justifications for the project. Uh. And so as you say, they're kind of they don't have a ton of other options.

And that's Jeff Muscus bringing us up to speed on what Google is up to and what it may mean for how big tech continues to exert its influence, maybe in a way that we didn't anticipate. Yeah, exactly. In the power industry, if you think about it, some of their needs are power needs from other industries. They're not growing, but when it comes to big tech, they are, and it's giving that big tech industry a lot more leverage when it comes to working with big power. His bio

says he only eats fruit till noon. I'm sure everybody who covers him says this because it's a great line in your bio. He's a former rapper. He's also author of the New York Times bestseller Living with a Seal Thirty one Days Training with the Toughest Man on the Planet. He co founded the private jet card company Marquis Jet that was sold to Berkshire Hathaway. He has done so much in his life. Owner of the NBA Atlanta haw Us,

father four, now he's a millionaire life coach. He was recently the subject of the opener of the Pursuit section of Business Week magazine, and Jesse Hitler is joining us. I'm so delighted to have you here with us. Thank you. And you're not done yet, are you know? What is it about your DNA, because you've gone a lot of different places. What is it that kind of drives you in your life? Uh? I'm a big check the box

and move on guy. So I really just want to have a big appreciation for where I am in my life, and I believe in building my life resume more than my traditional resume. So I'm just always kind of like finish something and onto the next, never looking back. No, you know what, Carol, I want to go through this life like I'm and at the end of the journey be like I don't want to look back and be

like I was the eight percent version of myself. So I really am sensitive to how much time I have left and just you know, trying to do as much as I can, right, because you could. Right, you're financially set that you could kind of just do whatever the heck you want. But you continue to help other people. Talk to me about this life coaching that you're doing. We talked about this, wrote about it. Andre's Mellen wrote about it in the magazine Tell me what you're doing

and why you're doing it. Well, I've had a very unorthodox business journey, you know. I started out in the music business coconut order with a company called Zico, which we sold to Coca Cola and everything in my life. Um, it wasn't really planned. I kind of just fell into it and started the process and turned it into a business.

And this is not this is no different. I wrote a book called Living with the Seal about a Navy seal that came to live with my family and myself for thirty one days, and it led to um speaking engagements and this and that, which turned into people wanting more. They want to know more about Well, what's it like? You know, we're all wired too and told to like be around like minded people, and like minded people tell

us like minded things. And we learned from stepping into the unknown and being around people that aren't like us, so getting a little uncomfortable. I just think, yeah, so when I look back at my life and the various life experiences, I believe like the more you experience, the

more you have to offer. And um, it just morphed into people asking me a lot of questions about business, about parenting, about I lived with on a monastery for for almost a month, and it just led to a lot of questions that you know, how could I help the most amount of people and share my experiences in these different buckets and it turned into a coaching program. We'll tell us about this coaching program. Who actually, I think you know who actually are the people who come

to do it. These are very successful people, right, there's walks of life. Well, it's people from all different stages of life. It's from CEO s two moms and dads that are just feel overwhelmed and are looking for guidance. It's called Build your Life Resume, and it's really it's it's interesting because it's not a business coaching course, although I offer business strategies and tips from my journey, it's really about most of us play defense in our life.

Like our calendars fill up with appointments and meetings and weddings and all these different things than our calendar is full and like the year goes by and like what do we do this year? And this is really about playing offense. It's about what do you want to do.

What are the things that you want to prioritize, What are the races you want to run, what are the adventures you want to take, what's the RV trip you want to take with your family, and scheduling that first, prioritizing yourself first, and letting those other appointments fill in around that. So at the end of the year, when you look back, you're like, WHOA, I accomplished Da da da da da da, instead of Wow, I'm living in routine.

I'm going through like this life like this. Then all of a sudden, I'm seven to eight and I'm like, whoa, I can't run that marathon anymore. You know, it's very much more on the offensive, right, that's what you're saying, and not being a defensive What's interesting though, is it's it's physical, right. This is the equivalent of kind of I think the way we wrote it in the story or Andrews wrote it equivalent to kind of climbing Mount Everest. Well, I have an event called about yeah at um. You

know that's separate. It's separate, it's separate. I'm a really big There's an old Japanese ritual I learned about this from a guy named Kyle Corver played for the Hawks, called the Missougi and the notion around the missage as you put one thing on your calendar so hard every year that the bennett that kind of defines the year, and the benefits last the entire three sixty four other days of the year. And I was thinking, well, you know, looking for something I could do with my wife and

my friends in the endurance sports kind of category. Because I'm an endurance athlete. I love the celebration around endurance, how it makes you feel when you accomplish that, et cetera. I want to share that with more people. But I was frustrated because a lot of the options required you to be a great swimmer, an obstacle course racer, or a great runner, and that eliminates a big pool of people had to do so much to get to that point, right, So I wanted something that could reach a wider group

of of a wider audience. We created this event called nine, which basically is we rent a mountain, you hike up the mountain, you take the gondola down, and you repeat until you climb the equivalent amount everest right, and you do it within a set amount of time six hours. So we've had eight sold out events and my wife has participated. I know, you know, my wife, Sarah Bly,

founder of Spanks. Yeah. Yeah, And there's no winner. It's just kind of like a you versu you challenge and it's really something where, Um, what I love about endurance events they forced you to be where your feed are and they forced you to be super present in a really busy world. And um, these challenges have been amazingly successful because they're outdoors and they come down to one thing. Will not like you know, I'm this amazing Olympic athlete, but like, do I have the will to stay in

and do this right? Because it's lengthy, right, I think you know, you have to have patience to do it right. Like, you know, it's not something you're gonna be done in four hours, right, You've got to keep going right. Yeah, the last one took me twenty seven hours. Well what do you make of my coach Jason Kelly and I we have a lot of guests on you know, we are both um just kind of in a what's going on in the wellness and fitness world, And I do think it's evolving to a place where even the medical

community is realizing how much how important this is. It's not just to go to the gym once a week and you know, eat crop the rest of the week, you know what I mean. And I think you play into that that people are really thinking about this is important. Set your goals at the beginning of the year, but it's it's something that's going to have a much more lasting impact on you See. I don't even like the word goals around wellness. It's lifestyle because if you start

thinking goals and deprivation, that never works. And you know, it's about lifestyle. When I have a goal, if that becomes my life right now, that's my lifestyle until the goal is done and then I go back to my regular life. But I don't look at as a chore. I don't look at it like I'm depriving myself. I have like this is what I'm doing and it's part

of my daily routine. This month, I'm doing something called the Calendar Club that I coined, where every day I run the amount of miles the corresponds to the day of the month. It is and it's hard, brutally hard, but it's my lifestyle. It's a commitment that I'm going through and I don't negotiate those goals. They don't I don't negotiate my goals like it's just that's baked into

what I'm doing today. And I'm so yeah, I'm just surprised that people are all of a sudden are like, wow, the benefits of this is like, you know, look how you feel you accomplish, But do you know what I mean, It's not just like go to the aerobics class and just have some fun with your friends and then kick back the rest of the week or whatever. Like I do feel like we're thinking more holistically about taking care care of this incredible machine that we've been given, right

and that we tend to abuse a lot. I think there's a big trend and that obviously, and I think there's a big trend in experiences, and I think the days of vacationing on the beach are starting to go a little bit like this, and people want more, they want experiences, they want to learn. You know, it's like Gandhi said, it's like, um, live like you're gonna learned, like you're gonna live forever. And wait, what did you say, learn like you're gonna live forever. Live like you're gonna

die tomorrow. Yeah. Right, makes you think about things differently. You know, You've gone through so many different stages in your life. I feel like, you know, I mean, it's fun to read your bio and I'm sure everybody asked you know, a rapper and started these companies. I mean, what have you take us back to one of those moments.

I mean, I don't know whether it was um, you know, the jet company, or whether it was the drink company, Like, is there a moment in time that really just made a market difference on you in terms of your perspective on life. I've had so many of those moments, you know, and most of those big moments are around failure. And I remember when my music career started, I was on a show called Club MTV. At the time, it was like a big deal at on top of the world.

And then I went to do my first performance in Pittsburgh and I got off the plane and on the cover and a magazine rack. When I walked off the plane was a magazine called Rap Pages. And my picture was on the cover of Rap Pages. It was like the equivalent of being on like a find like you

like this. It was unbelievable. So I'm like, oh my god, I gotta buy all these and send them to my family, and my parents are gonna So I bought all these magazines and I'm at the check out and I look at the headline and says a white rappers ruining hip hop and it was my picture. And I didn't want to leave for six months. I felt like I didn't even want to go out in the public, you know.

But guess what, nobody remembers that. A couple of years later, we were doing a hundred fifty million dollars at Marquis Jet. Like your life in any second can shift and you can have this, you know, your one iday idea away from this life changing moment. That's Jesse Hitzler. And as we mentioned, he's been an entrepreneur, he was a rapper. He's done so many fascinating things. He keeps looking for

what's next, and right now, what's next? Is his own endurance training and workouts, but he's also helping other people achieve that as well. Well, where else are you're going to have a discussion about run DMC and ultra marathons and coconut water. He inspired me after it gave me some goals to go after. We're gonna work in our life resumes together. Catch the entire interview that Carol did

with Jesse Hitler. It's our Business Week Extra podcast, and that wraps up the weekend edition of Bloomberg Business Week from Bloomberg Radio. Thank you so much for joining us. I'm Jason Kelly and I'm Carol Masser. Be sure to tune into Bloomberg Business Week Radio Live Monday through Friday starting at two pm Well Street time. And you can't catch us live, get our daily podcast wherever you download your podcast. You can also watch the show live on YouTube.

Just search for Bloomberg Global News and you can get this week's edition to the magazine on newsstands now. Will be back next week at the same time. This is Bloomberg