Covid Is Manageable Through Immunization

Bloomberg Business Weekend iTunes, SoundCloud, or Bloomberg dot Com. You can also listen to our radio show at two pm Eastern Time on Bloomberg Radio or watch us on YouTube search Bloomberg Global News. We talked about You've been hearing from Nancy Lions and our team about US health officials expected to talk about tighter guidelines for the use of masks, especially in indoor settings and places where that delta variant is spreading rapidly and increasing cases of COVID. There's a

lot going on, Maderna saying it's COVID nineteen. Vaccine manufacturing partners outside the US TIM are facing delays due to lab testing issues that occurred in recent days, and in some places we see cases come down, other places we

see them go out. Yeah, we do like to do a periodic check of the numbers cases globally topping a hundred and ninety four point eight million deaths, surpassing four point one seven million vaccine tracker from Bloomberg News, more than three point eight nine billion doses have been administered.

Keep in mind that many of these doses require two shots in order for someone to be fully vaccinated, and the UK reported the highest number of Kevin nineteen death since March, prompting a top government official to warn the pandemic is not over yet. That is the subject of a Bloomberg story will dig into later. Let's get to our guest, Dr David Levy, the CEO of the healthcare provider e h E Health. He's an epidemiologist. He's based in New York City. That's exactly where we find him

on the phone on this Tuesday. Dr Levy, So nice to have you here with Tim and myself. How are you doing? What are you seeing when it comes to COVID and particularly the delta variant, well obviously around the well. First of all, thanks for tasking, nice to speak with you. Uh, look, I'm seeing what we're all saying, which is we're basically

living in a tale of two cities. You have a cities and communities where there's high immunization rates and relatively low impact, and you have cities and communities with low immunization rates and relatively high impact. And that's the world we're living in today. And I'm very happy to say that New York is one of those cities where we're having relatively low impact because we're in a high immunization city right now. That said, we are expecting to hear

from the CDC just in about forty minutes. We do expect health officials in the US to return to tighter guidelines for the use of masks. How are you reading into this given that we were told weeks ago that fully vaccinated individuals don't have to be wearing masks indoors. Well, I think I said a few months ago on this

program that epidemiology is the exact science of probabilities. And as the environment changes and we're dealing with, you know, a contagious and mutating virus, that the facts on the ground and the recommendations will have to change. I mean that that's absolutely normal. I will tell you when the first recommendations came out, I didn't interpret them that said that I should never have to wear a mask again.

I mean even in New York City when I go if I went into a venuehere there are five or ten thousand people and fully vaccinated, I would still wear a mask. And I am going to suggest, I don't know exactly what they'll say, that they will make recommendations based on the level of community spread in whatever community you happen to be living in, and certainly not going to be the same in a highly immunized community versus

a lowly a low immunized community. So I think you have to uh, you know, like everything else, there's recommendations and you have to use your own personal judgment and with respect to local circumstances. Yeah, and when in doubt, maybe just throwing a mask. The headline just crossing the Bloomberg terminal. This is coming from the ft the Financial Times England set to allow double vaccinated US and EU tourists. What do you believe is the right thing when it

comes to cross border travel? Dr Levy Um, Well, I think in general, I don't think there's a big risk with respect to people who are fully immunized. I think the issues and in fact I gave a talk about this a couple of weeks ago. I don't think the issues are as much science based as they are politically based.

I mean, fully immunized people ought not be precluded in my view, from international travel, the risk is more um uh, you know, when they go from place to place, they ought to be cognizant of the community spread and choose when and where to uh to wear masks. So I I don't think that fully immunized people are are at particular risk moving across the boarders. Personally, I'm now involved in situations with both the UK and Canada being fully immunized.

I really don't have concerns from my own personal travel. What about people who are fully immunized getting a breakthrough infection and then perhaps even unwillingly or unknowingly passing that to somebody who hasn't been vaccinated. What do we know about the ability of somebody who has been fully vaccinated to spread COVID. Well, we don't know a lot about that in fact, and this is one of the issues people always want an answer to an evolving scientific situation.

We don't clearly know the answer to that. There's some early studies that should suggest that in fact, there may be as high a viral load and people who have been immunized and who have gotten COVID as those who have in fact not been immunized. But we don't know the extent to which that will spread. And men, as you well know, many of these cases are asymptomatic. But the best defense against any kind of spread is getting as many people immunized as possible. That creates the greatest wall.

And I think people have to be reminded that nobody ever said these vaccines were a hundred percent effective, thecent effective. We live in a city of eight million people. If everybody was exposed to this new DEBTA variant, you would as you'd expect five percent of the people to to to become infected, which is three fifty people. And we're nowhere near any kind those kind of numbers. So the

vaccines continue to be very, very effective. And you know, rather than picking out, you know, one or two given situations in a given person in a given venue, the idea here is to look at the overall macro public health you and get people immunize. It's the most effective way to lower the lease value. The lethality. This this pandemic and the more, the faster, the better. It's as

simple as that. Dr Leaving one thing Tim and I wanted to ask you, is are we in a better place than we were a year ago, six months ago, a month ago. We are absolutely in a better place and from any point in the past with respect to our immunization status. And even though it's slowed down, it gets better and better and better. I think that you could say that we're in a difficult spot in the past month because of the rise of this current variant.

But that being said, it's giving pointing us to a really strong lesson which is the best that we can deal The best weapon to deal with these variants, not just today with this variant, but variants in the future, providing the variants don't circumvent the vaccine is to keep getting vaccinated. You know, for people like myself who look every day at the statistics in New York City, uh, you know, we have about a thousand cases now versus the bottom of a trough of about a hundred hundred

and fifty a few weeks ago. The hospitalization rate has stayed pretty much the same, hasn't ticked up yet, and the death rate is still at record low. So the lethality this epidemic in New York City is very very low compared to where we have been in the past, and people should keep their eyes out on what the total lethality of this epidemic is and how immunization can improve that, you know, month day, day by day, week

by week, and month by one, month by one. And the single best weapon I can't stress this enough is getting immunized. Yeah, the numbers are there. I mean CDC has said that of people who are hospitalized with this are people who have not been vaccinated. Um. Dr Levy, I'm wondering about getting the next portion of Americans vaccinated. You have New York City in California talking about and indeed, UH implementing vaccine mandates are starting at different times for

people who work in respective areas. Are vaccine mandates a good thing? Well, I personally believe in vaccine mandates. Uh. All of us went to school with vaccines, otherwise we couldn't go to school. Nobody told me, or nobody told me to with respect to my kids, that you had a choice to wear a mask or to get a measles vaccine. You had to get a Measles vaccine um. Obviously today is a much more complicated social environment around

the issue. But I think there's a point, and we've could to jold our own employees, and we've gotten to very high vaccination rates on a voluntary base. Is but I think that for many people, this idea of vaccine, it's and it's impact with respect to the disease, is still an intellectual construct. And somebody we were talking this morning amongst a few of us about this idea about a mandate. Uh. Thereby making people give something up if

they in fact don't get the vaccine is powerful. Not necessarily your job, but the ability to go to a show or the ability to go to a restaurant. This idea of finally having to confront that if you're not vaccinated, your life will meaningfully change. By having some sort of a restriction, I think can be a positive effect to getting more and more people. Uh. Somebody said this morning, you know, there's nobody writing emails that they're withdrawing from

college because their college happened to mandate vaccines. Nobody's pulling out of college because of that. And I think that the same thing is going to be seen as a private institutions mandate vaccines. I think, you know, there's a lot of a threat about it, but I don't think that there's going to be a real withdrawal from from those institutions. I really don't. It's funny that you said that my daughter starts college in the fall and her school just sent out a note saying that the vaccination

rates aren't high enough. I guess they're asking for evidence, and they're basically, I think, kind of pushing people saying, you know, please get it. We're not making it mandatory, at least not yet um, but we'll see what happens. Dr David Levy, CEO of E H E Health, thank you so much. It's so interesting, Dr David Levy, just now talking about the idea of taking something away or you're not getting access to something because you're not vaccinated.

For for me and for so many people, I know, the idea of just being safer and being able to kind of face the world, getting rid of the stress of being concerned that you can't get the virus. That was enough for me. You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes, Tim Stinovic on

Bloomberg Radio. All Right, well, this week's cover story Bloomberg Business Week magazine happens to be among our most read stories today on the Bloomberg You'll understand why in just a moment. It's about Beijing's crackdown on its big tech companies, how it is ushering a new era. So let's get to it. It's something we've talked about already a lot. Joel Lebbers, editor at Bloomberg Business Week. He joins us

in the Bloomberg Interactive Broker studio. Also, Austin Carr, technology reporter for Bloomberg News, joins us on the phone from l A. My biggest question, Joel, with this story is did Austin get to go to Grand Cayman to actually report it, because that's how the story opens. Yeah, not not to my knowledge, But you haven't got any expenses

for July. I haven't got those expenses. And I was thinking as you said that that, you know, he just did that cover story not that long ago about Margaritaville, which maybe maybe that did take him to the islands, and I just didn't put two and you together. But uh,

you know, I think this story is super significant. When I think about the storyline through the year, this one is increasingly feeling like the story of the year, which is China crackdown and and and what it really means because I think forever investors especially, I've always felt like, oh wow, this is trying, this is a growth story, and like the tech versions of companies coming from China can be very different than American versions. And you know,

just seemed like that the guy was the limit. And then this guy has basically been brought down, um and especially just then of the last week, so we felt like that was uh, you know, especially irrelevant for the cover this week. So so Austin, can you can you tell me, like, you know, we we set you loose on this story and what really stands out to you about what China is doing right now, because there's a term that you dropping the story, that China model that

I'd like you to explain to Sure. Yeah, And and just up top, I I should note that I am in Los Angeles reporting, not in the Cayman Islands on the beach anymore. How don't we know that? Sounds like can either confirm nor no that, But I do agree this is one of the big stories of the year that we're really eager to focus on when it comes to Silicon Valley versus China, because for so long they were sort of emulating the model that the US had

done with their industry. For every you know version of Facebook, there was a version of that in China, or there was buy You the Google of China, or d D the Uber of China, And until just you know, about October or so, that model had just continued growing and

growing and they were becoming more global competitors. But what with these recent crackdowns on d D, on Ali Baba, on the education industry, on Matuan, we're seeing a very a lot of up people in that model where China is basically saying to its entrepreneurs, no, this has got to stop no more, you know, freewheeling capitalism. We're going to rein you in a bit, and we're going to do a lot faster than the U S regulators can

do it in the US. And I think the big standout thing for me, and we can talk more about the new model for China, but the big standout thing is that going into this, I assumed we'd feel here a lot of negative reactions of the government intervention in China,

and it was actually quite the opposite. We actually heard a lot of positive reactions, especially from the startup in VC community, that felt like this was going to level the playing field in the China texting in a way that won't happen in the the U s texting for

many years. So why is the Chinese government no longer taking a permissive approach Austin When it comes to big Chinese tech companies, You know, there's definitely a sense that these companies were getting too powerful, um Ali Babba being a prime example, where it was acting with a lot of monopolistic behavior, alleged monopolistic behavior towards some of the startups, forcing them on their platform, forcing smaller players to sell out, taking advantage of their data, and really behaving in a

way that was in the corporate interests but not necessarily in China's national interests. And I think that's really where the big pivot is happening in China right now. When we think about anti trust cases in the US, that's often to protect the consumer, but in China it's increasingly to protect national policy. And so when these companies were vieering off track, not behaving in a way that was

in the in China's national interest. That's when the government has stepped in and say Ali Baba or two d D or may twin that they have to behave differently, you know. Reading the story Austin and in just hearing you describe it like that, I think some some critics of US tech companies could say, hey, wait a second, this is what we see US tech companies doing to to their smaller competition, correct, I mean we we did

hear that. I mean one person had told me that, uh, you know, China was able to reign in Ali Baba within four months, whereas it's going to take US regulators, you know, years and years, if not longer, to rain in a company like Facebook or Google about their alleged you know, privacy issues. Um. And So basically what we have to look at is what is the outcome of

these two different approaches to regulation. On the one hand, critics and observers believe that US tech companies might have a bit more of an edge in the global theme. They will Facebook the same companies will continue to grow at a more global scale, where China's model is now

becoming increasingly China centric. And also less founder centric. In other words, sort of the sort of heroes of the tech industry and Silicon Valley like Ali Baba co founder Jack Ma might not be as vocal or as present as sort of their counterparts in the US, like Elon Musk will continue to be um and so there's just

a give and take there. On the one hand, China might have less global champions, but perhaps they they that sort of braining in the top players allows a new generation of startups to grow, whereas in the US startups are finding it difficult to grow without being swallowed up by the bigger players. Austin, what have you not said that you needed to say? I have not. I have not said that I will be filing an expense report. You like, I better get to the grand game? Is

just to do some last minute fact checking? Okay, Well, you know it's interesting. I read your story and I was thinking, Okay, the EU is leading when it comes to climate change regulatory moves. I feel like China is now leading the way when it comes to big tech oversight. You know, what's the US role in all of this and what it mean for US big tech companies. I think the US is still figuring that out. I mean,

we we we've seen so many hearings. We've seen sort of fines levied in the EU and the US towards certain companies, but it has not played out as aggressively UH in the U S as it has in UM the in in China markets. UH, we are seeing sort of U S companies having to you know, one sort of interesting juxtaposition was on July four, This is days after Facebook has been dealing with UH, you know, issues around government intervention, what's going to happen with some of

the antitrust suits against them? And you have Mark Zuckerberg gliding on that that hydro surfboard on July fourth, an Independence Day, carrying the American flag. Compare that to someone like Jack Ma who has basically disappeared in recent months. We haven't seen them, and you can really see the stark difference between how much pressure of the U S tech companies, the largest giants are facing verse is UH

for versus the Chinese tech companies. But I would really stress at this is a nuance complicated issue, and the idea from a Western perspective that the China is just breaking down their big text team not correct. They're just trying to tell them what they can know no longer do. It's the perfect read right now, investors, US investors are gonna love the American tech companies even more though as a result. The big one, big take away, Well, it's a must read and check it out. It's the cover.

Joe Weber, Editor Bloomberg Business Week, Austin car Uh, technology reporter Here at Bloomberg News. You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes. Tim Stinovic on Bloomberg Radio. TikTok, everybody. We are waiting from the CDC a bit of an update when it comes to COVID and mask wearing. So as soon as that begins, we will take you there live. In the meantime, you know, it also got underway today the Federal Reserve today meeting busy. Yeah,

and we're gonna get that decision tomorrow. Let's find out what we should be watching out for. We've got dynamic duo Steve Skanky back with US Chief Economic Advisor at Kiel Point, former U S Treasury and White House National Security Council staff member based in Washington, d C. That's where we find him on the phone and also with us Francis Donald. She is global chief economist and head of macro strategy at Manual Life Investment Management. She too

back with us on the phone from Montreal. Francis, Uh, Steve, so nice to have you here with us. Francis, let me kick it off with you. What is it? I mean? Is it gonna be a boring meeting? Can I just go out for a like a three martini lunch and then come back when it's all over? Or do what do I? Or should I be closely listening and watching? Sometimes it's better. I'm not a Martini kind of gal either,

so I don't even know why I said, Martiniz, go ahead. Well, you may have the right strategy, because there's always an emphasis on trying to parcel out word by word. I think they can probably get away with not doing much tomorrow. But the question, of course, when is this paper coming? Is it going to be MBS the US focused? How much warning are we gonna get? But mon view is it actually doesn't really matter whether we get a September taper or December taper. That's not the underlying question that

has spooked markets here. The question is did the set really have a change in their policy making reaction function with average in flintship targeting. They're focused on broadways and inclusive employment. Do those two rate hype dots really matter? Are we just going back to pre COVID style monetary policy?

So the most important question I'm looking for is does Powell in some way push back against those dots, push back on the idea that a I T was just with service and give us some indication that yes, people on notepaper, they will be very patient on rate hikes. Two has to get priced out a little bit more. I think for this curve to start re speepening. Steve Skankey come on in here and weigh in on this.

Do you agree with Francis that that is the most important thing we should be keeping an eye on when it comes to what we hear from J. Powell and the Fed tomorrow, Well, it certainly is something that we well, thanks for inviting me. Certainly is something that we want

to be paying attention to. I think the big challenge for tomorrow is is for the Fed to uh uh not walk back from it's it's somewhat hot um uh outcome with the change in the dot plot from its meeting a month ago, and at the same time to acknowledge that the COVID nineteen delta variant UH could become an issue. We see some of the indicators of of

economic growth slacking a little bit. UH. The FED hasn't seen its employment growth numbers achieved yet, and so it it wants to keep the stimulus on, but at the same time doesn't want to disappoint the market that it

is giving up its vigilance on inflation. You know, the inflation is the numbers are really a conundrum for the FED because when you drill down into it, UH, you know, numbers like like housing or um shelter, which is thirty three percent of the CPI basket, only a two and a half percent um over the last twelve months through

the end of June. And for for anything really to happen that's not transitory and inflation, you have to see some basic shift in something you know, in shelter, medical services, food at home, and they're just haven't been that there yet, so that the FED needs to assure markets, but yet at the same time acknowledge what it always acknowledges about. We haven't seen substantial progress yet toward our goals. Right the bondom market, we tell you that, Yeah, we're in

on that narrative. We've got the tenure note all right now at one three Frances, What about the financial markets? We are seeing some pressure today because of the big tech names, although we're coming off our lows, concerns about earnings, concerns about outlook. It be interesting to see what these big companies what do we have to We have Apple, we have Google, Microsoft, Right what they say about you know the variant that you know Delta and COVID. How

much do you think we know? The FED watches financial markets? How much do they watch earnings as well in terms of figuring out what the growth and inflationary trajectory might be. Well, I always think of the said like macro strategists. Maybe that's my own bias. But if they're like me, and I think sometimes they are, maybe I'm like them. What they're probably looking for clues within those statements regarding a few key issues that are really a creating massive uncertainty

for the outlook want to supply change disruption. We think that that shows up and maybe tech earnings to the same extent. But any invocation that those are either falling back the baiting or persistent problem does change not just the inflation outlook, but the growth outlook, and likely going to be listening for for comments about labor shortages and any indication that maybe some of that labor force participation rates coming back and how that's going to be impacting wages.

And then if they're like, we're also looking in earnings for any indication about how government spending ahead might change the outlook. These are three huge uncertainties that aren't just weighing on central bank reaction function or the way we can construct asked allocation portfolios, but individual companies in America as well. They're creating this breadth of uncertainty that means we don't have career vision on what growth, inflation, or

policymakers are going to be doing ahead. And that's the underlying problem. That's the nerves you're seeing in this market, is this complete lack of visibility. Uh, Stephen, we only have about a minute left, But I'm gonna ask you the question we ask each and every time there is a FED meeting. What's what's the question that you ask FED share Powell tomorrow? If you were given the chance

and just got about forty twonds. Sure. Well, at cal point, we're watching for any indication that's going to drive markets one way or the other. So I guess my my main question for him to be would be, Okay, so you you talked about talking about papering, so this time did you actually talk about it? And do you have a plan and when will we expect to see that plan? We have to wait till after August. We have to

wait till September. And while I agree that it doesn't matter so much as to when it starts, markets would like to know, uh, when they're going to get on with it, Steve really quickly. Do we hear more about Do we hear Delta being said more tomorrow or Transitory? I think probably Delta Moore tomorrow, although this is their first meeting since the June and Place and cp I, so probably Transitory is going to be at two francs five seconds, Delta Transcharactor. What is going on in the

housing market? Are they afraid that it has bubble components? That's my question. Francis Donald evert Man, you life and Steve Skanky over kill point the journal. Yeah, but you let me drive oh no, no, no no, no, drive home all night, please, I'll do the ravel. I want to drive drive question ring, This is the drive to the globe. Give me thanks. We'll drying us down on Bloomberg Radio. All right, just about ten and a half minutes left

in today's trading session. I'm kind of setting up my four screens of the Bloomberg terminal so that I can track, uh, the dump of earnings that we're going to get from big tech names TIMM and Microsoft, Apple all set to report, among many other Starbucks too. These are big ones. They have provided a lot of momentum, certainly to the trade over the last year or so. Let's see what Hillary Kramer has to say when it comes to today's market

trade and those earnings yet to come. Hillary Kramer is President, chief investment Officer at a G Capital Research, author of Game Change. You're Investing How a profit from tomorrow's billion dollar trend. She's on the phone in New York City. Good to have you back with us. What's on your radar today? Because we've talked a lot about big tech earnings, Chinese oversight, Chinese big text selling off, We've talked about the delta variant. What really matters to the equity trade

near view. All of the above is okay too. It's everything that you mentioned. But in the market's very nervous here for sure, and that's what those those variants are. But you have, right, you have China, the valuations are high and overstretched. But then we have these like brutal fell offs, right with these sharp sell offs, and then like everyone gets kind of shaken out, and then you know, and then everyone comes back in um. But I think that I really do think that COVID with the delta

variant is an issue. The FED stopping with tapering could really be a concern because next could be, you know, raising rates and no one's really talking about taxes. And at three point five trillion dollar in for structure deal, human infrastructure deal that needs to be paid for, and that's concerning everybody from the far left to the far right. You know, ordinarily it's something that you know, we all want and we you know, we we recognize the importance.

But when you're talking three point five trillion, the markets very nervous. Now in terms of specifics, Carol, Apple is tricky. Let's talk about earnings, like like in a few minutes from now what's it? What's on my radar? Apple is really tricky because five G I think is already built in. You know, it's not Apple is not a top line grower. They don't have all that cash that they used to have. Everyone thinks of Apple is like you rich in cash, but they block back so much stock. And then I

was looking today at the operating income. In two thousand and sixteen, Apple's operating income was sixty nine billion. Last year it was seventy seven billion. It is not a big growing company. I do think Microsoft is going to be great. I think that they're they just continue, you know, on all cylinders to grow and everything for um, you know gaming, uh, to their web services and cloud computing, so they're very strong and uh and to those those

That's really what's on the radar. UM. My other concern, of course, is what we're going to hear in terms of like, for example, Caterpillar on Friday, you know reporting we have Ford. Now Ford doesn't matter a lot, but Ford on Wednesday is going to matter to me because we want to hear what more what Ford has to say to the to the minute about difficulty with the supply chain. Right, you know, we keep hearing that everyone knows that my conductors are a problem, but okays just

have to do it all yourself. Huh, well you have the problem is that's just it. Nobody really can And I think that one of the reasons we see a lot of these um engineering and infrastructure companies not really like catching a bid even with a one point five chillion dollar you know, like actual infrastructure coming. That's not the human infrastructure bill that we're going to see. But the concern is how are they going to really be able to build? You know, they're really backed up because

of that. And so what I am advising and what we're writing about is that we think that the banks, you know, there's a sort of built an expectation of recession, so we think the banks are the best opportunity here, and the banks are also a great proxy for for having Hilary, I want to go back to something that you said a couple of minutes ago, was regard to the delta variant. Did you say that it is of a concern or is not a concern for markets right now?

It's it's it's becoming it's becoming a yawn, right It's not as much of a concern as it had been. However, it's a kind of thing that can you know, that can bite us, you know, that can just you know, get us really quick, and especially when you see the numbers and how fast COVID can Why is it? Why is it a yawn If the cdc IS is changing its guidance. If we saw the sell off a week ago Monday, the narrative around that was because of concerns about the delta variant, Why is it a yawned? To you?

Because the market worries about the unknown, what it absolutely doesn't understand that could hit it, you know, like you know, a chair, like you couldn't hit over the head to the stock market worries, but everyone has sort of this built an expectation. We're no longer in March April of where we're wearing, you know, two pairs of gloves and we're stripping down when we get home. That the concept now is okay, COVID is bad now. I'm saying what

the sentiment is in my opinion. Living in New York City, Midtown Manhattan, across from n YU Medical Center, Lane Gone, I can tell you it is real. It was real. I thought dozens of medical examiner trucks, you know, refrigerated morgues and it's real, but the market isn't really paying attention to it. Instead, the markets more concerned really about China right now, which should I think be the least

of our concern is accepted. We have a lot of investments or some of the funds that are highly invested in China. You're not so, but wait, so explain that. What does our audience. I mean, we've talked about that a lot in the last couple of days and certainly this week and over the last couple of weeks, and I really it's going to be when we get to December, this is going to be one of our big stories of the year, no doubt about it. What is it that our audience needs to you know, continue to pay

attention to when it comes to China? Uh? That it had to do with really more than Cathy Wood type funds. The funds that are she's getting out of Chinese tech company. I know, I saw that. So she's starting to dump and leave those Why would she do that because she sees that that her return, her alpha's slipping because of China,

And that's where one needs to be concerned. To me, it reminds me of like year two thousand with internet stocks starting to fall, but the greater market really didn't have much concern at the same time, though of course, you know there could be some spill over. But these Chinese stocks, right Ali Baba keeps sitting fifty two week lows. Is Ali Baba bargain right now? I don't think so. At this point. I wouldn't touch it because we don't

really know exactly what's happening in China. But we have enough strength and understanding and transparency in the US market that we can we don't have to really worry that. I'm not really focused on China. I mean again, my sea concern is inflation. My big concern is we we have these unemployment benefits are expiring, the last of them September three, So we have unemployment and you have this

extra three dollars which some states have already eradicated. But um, you know, we could we could see that could be the big hipping point. Listen, I want to think is remnning that time. And but one of the things you say is avoid big tech until after earnings. These stocks will get cheaper if you say you're worried about a bubble. This is where the bubble is. But potentially there could be some opportunities after we get this this dump of big tech earnings. Yeah, and the reason is simply that

people go back into it. So it's almost it's always more of a trade at this point. But you're looking at valuations that are overstretched. But at the same time, I will say Apple is trading at times or next year's earnings. That still isn't horrible. But Microsoft, which I love, and I think that they're going to be the one that we're going to see up, you know, in in in trade, in after market trading. Tomorrow morning, we're gonna see up it's it's Microsoft. I never thought I would

see it thirty trading at thirty four times June earnings. So, M Carol, it's a worry, it's a concern. So we all have forgotten the fact that you know, these were stocks that were all trading below a hundred dollars, you know, and that are Yes, it's very different overstretched. Everyone's looking for yield, everyone's looking for return. There's two much of liquidity out there. The set has done us absolutely no favors. They've made billionaires out of some and there are lots

of people that don't have it. Hillary. We've got to run, but thank you so much. You covered so much ground, like you always do. Hillary Kramer, she's ever at A and G Capital Research, joining us on the phone. Thanks for listening to Bloomberg Business Week. Download the podcast on iTunes, SoundCloud, or Bloomberg dot com, and you can also listen to our radio show at two pm Eastern on Bloomberg Radio or watch us on YouTube search Bloomberg Global News