Didi Included in Latest China Crackdown

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. Well, I'm eager to get to our next guest, Dr lag Day Williams, who's Chief of Staff of Neurology at Columbia University. He's also the founder of Hip Hop Public Health. It works in the public sector to address health and equities and to bring vital information to underserved communities through the power of art,

music and science. Dr lage Day Williams has joined us before on the show several times. Dr Williams, how are you. I'm doing well. Thanks for having me back. It's great to have you back. I want to start with we don't have a lot of time, so I want to get right to it. And what you're doing with hip hop public health, what you're focusing on right now is helping to reach underserved communities of color with the vaccine.

And I'm looking right now at the New York City government website that shows data for different demographics with regard to how what portion of their population has been vaccinated. Um, white people in New York City have been vaccinated. That compares to of Hispanic and Latino and of Black New Yorkers. Why are we continuing to see this disparity? So it's a multiple reasons west seeing. But if you drill deeper into the numbers, that has been progressed across the board,

but the disparity is still very real. Um, if if you extrapolate across the country, you look at the national data, we've actually, uh, Hispanics are doing very very well. Of his Flanics have been vaccinated according to recent trends, versus that total shaff the population, which is about seventeen percent.

But still if you look at the if youok at the African American data among blacks, uh, you know we have also surpassed our share of the total population with about thirteen percent across the country been vaccinated versus you know, twelve percent to total share. But I completely agree there is still a tremendous amount of work that's left to be done. You know, I've always said that building trust,

you know, isn't done overnight. It takes time. The real challenges that we are racing against time in this situation, we're racing against the variant, and so I think we just need to continue to increase, escalate an ant, intensify our efforts across multiple levels UM and get to the place where we actually get to a door to door vaccination campaign UM and UM and really hyper localifed messaging adored or vaccination campaign sort of like what we what

we see with the census every ten years. If you don't fill it out, somebody comes to your door and knocks on it right exactly exactly. And that's difficult though to do, especially with the two shot vaccine. It works with a one shot vaccine, the Johnson and Johnson shot, but how do we know that somebody will be there the second time around. It's it's a challenge to it's a huge challenge. But you know, if I always said, this is you know, this is the United States of America.

We have we have we have you know, robots on Mars right now. We you know, there's nothing beyond our capacity to accomplish. And I think that we just need to bring you know, the best minds together. But more importantly than the best minds, we need really glass roots approaches to the solution. I've always said, um, you know, the closer you are to a problem, you know, the

closer you are to a solution. And so we need to get people who are actually living in and with the problem, and we need to figure out a way to work with them to attract you know, scalable solutions. And I'm sure there are examples in some smaller communities across across the country where success has been you know, has been seen in communities of color. Um. But you know, and so I think that we need to you know,

take these best practices and scale them up. What are some of these best practices because you said it starts with trust and the idea of communicating. And I know several people that have yet to get a vaccine, and and and they're concerned, they have concerns, they want to wait, they say it's new. What's the right messaging here, Well, the right messaging is the for ust acknowledge and be non judgmental when discussing these issues with someone who is

skeptical or hesitant or lacked confidence. I mean, we also have to acknowledge that there's certain people no matter what we say or do, UM will will continue to refuse. But I do think that there are still a number

of people who can be persuaded. But again, it's gonna take, um, you know, really real, you know, personalized efforts UM to really identify uh you know networks UH, and leaders within networks, credible messengers, champions within these networks who are open to the vaccination message or or or have themselves being vaccinated and working with these you know, these these these leaders, these messengers, these uh you know, credible individuals with it

what work with that networks? UM. And and it has to be one to one, it has to be one on one UH persuades. You know. At Columbia where I am, for example, UM, you know, we have multi layers of interventions all the way down to those one on one conversations with people that you trust. And I think that you know, I don't think that um uh, you know, copper carpet bombing messages are gonna work. I think we've already plucked all the low hanging fruits from that type

of approach. I think we're now down to that door to door, that one on one conversations with people that people trust. Yeah, well this is where the real work really begins. And speaking of that, when we love about thirty seconds left, But I want to get to some of what else you're doing at Hip Hop Public Health because it's not just about the vaccine, oh absolutely not,

absolutely not. You know, we address health disparities and health inequity, um, you know, as a as a whole, and we identify areas where communication that's been great comity of communications with certain communities, and we take our our approach, which is a really scientifically embedded, you can evident approach motivating the

change in the community. Right, Dr Williams, we unfortunately have to leave it there this time this Dr lager Day Williams, chief of staff of Neurology, also found at Hip Hop Public Health. Bloomberg Philanthropies has provided in grant to Hip Hop Public Health. He's also a chief of staff Neurology at Columbia University chairs of d D SHO Shing d D and Inc. I should say, the parent company of d D SHO Shing Uh the a d r s right now lower by more than twenty point five per cent,

absolutely plunging just a few days after going public. Here in the United States. Matt Turner is stocks reporter at Bloomberg News. He joins us now on the phone from wee Hawk in New Jersey. Matt, let's start at the beginning here, slide like this all because of regulatory crackdown in China. Give us the details here. What's going on? That's him, thanks. I mean, this all sort of started

last week. We saw the we saw the idea where they raised four point four billion dollars um and you know, share us kind of climbed in the first few days of trading and really pulled their market cap up close

to eight billion. But then, um, you know, Friday, we had regulators in China come out saying that they were going to launch this cybersecurity review into the company and they had halted the registration of new users, and we saw shares kind of trade lower on Friday, and then you that really escalated over the weekend, we saw they expanded that probe into two other firms, including d D, and they also have the app stores to actually remove

their apps from the app stores completely. Um So, obviously that leads us into this morning where we saw you know, shares really really take a nose, that they were down as much in pre market, and then you know, as you said, now they're they're still down well over today. Look, this was obviously not priced in. When you see a a a decline like this, a move of this magnitude, this is something that was unexpected by regulator regulatory authorities.

I'm thinking, you know about the timing here, right, just a few days after the company goes public. What do we know about what the Chinese government has said to d D and how they feel about it going public in the US. Yeah, I mean it's a little unclear. We've had the Wall Street Journal report earlier that the Chinese regulators may have actually warned d D as as far back as three months ago and had asked them

to delay that i p O. Obviously that wasn't the case. Um. D D in fact even flagged in the regulatory filings for the I p O that there were some sort of you know, there were those anti trust concerns and they weren't actually sure uh you know, if those would be resolved fully, uh you know, if they were going

to face more fines in the future. Um. So it was something that may not necessarily have been priced into the stock, but it was definitely um you know, if you kind of dug into the the filings and even uh you know, spoke to some of those people in analysts in China. Um, you know, it was a concern

at least inside the company. There's also just the latest in sort of a crackdown on Chinese companies um as you and flip a right in the story, Investors worried that the latest security based probes have vopmened a new front in Xijian things broader campaign against China's internet giants that began in November with the collapse of Aunt Group companies thirty five billion dollar I p O and subsequent

anti trust investigations into Ali, Baba and Matwan. I'm wondering how investors are digesting this news when it comes to other tow A d r s of other Chinese companies that are listed here in the US. Yeah, it's it's been a pretty broad based sell off today. UM. We we had looked earlier at you know, all these Chinese firms that have actually I POD this year. There are

thirty seven that have started trading uh since we started. UM. And of that group, uh, thirty one of those were lower at this point, uh, you know, as about half an hour ago. So you know, it's a pretty broad based selloff. You know, even shares of Goldman and Morgan Stanley, who were both underwriters of this d D I p

O we're lower today. So it's kind of it's hitting every everyone that's involved, and you know, even even some of those antilary stocks that are not obviously directly linked to d D. So does this make Chinese companies that are thinking about listening in the United States? Does this

make them think twice about doing that? Yeah, I mean from everybody that we've talked to, you know, this is this is something that uh, you know, the analysts are saying is going to be a concern for some of these ideas that are going forward, even some of the

ones that are are planned for later this year. UM. And it is part of that push that we've seen from from China and from Jun pink to to try and get these Chinese firms to list domestically, you know, in Hong Kong and in China as opposed to listening in the US market. Yeah, I I wonder match. Just in the last ten seconds, we have what analysts are

saying about the business. How this actually affects the company's business if people can't new customers can't download the app, yeah, I mean for now, you know, it's a little unclear they're saying that. You know, like we've seen some of the other crackdowns. You know, the financials haven't really borne any of the impact, right, you know, that's something that they will be watching closely going forward. Matt Turner, stocks

reporter at Bloomberg News. He joins us live on the phone from Wee Hawk in New Jersey, giving us the latest on d D Inc, The parent company of d D Sho Shang. Thanks so much, Matt for joining us. You're listening to Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. Well, here at Bloomberg Business Week, we've been covering the unequal distribution

of vaccines around the world. What's happening here in the United States is certainly the exception, not the rule, with vaccines pretty much available for free to anyone who's eligible. But a new story in Bloomberg Business Week by James Peyton and John Lawerman talks about life saving vaccines becoming profit machines for drugmakers and for middle income countries protection from the virus can cost governments dearly. Joining me now is Joel Webber, editor at Bloomberg Business Week. He's with

me in the Bloomberg Interactive Brokers studio. Also joining us is James Peyton, healthcare reporter for Bloomberg News. He joins us on the phone from London. Joel, this is a fantastic piece that that really dives into the cost, really what it costs countries around the world, uh, to actually get this life saving tonic, right, this life saving vaccine. And I'm wondering how much should they be getting charged by these for profit pharmaceutical companies that for decades have

been boogeyman. That's what we're finding out right. And I think what what sticks out to you, um or to me at least in this story is is actually just what a big windfall COVID vaccines have become for pharma. I mean, we're looking at a hundred billion plus dollar business and depending on how things go, you could just imagine their booster shots look like another another wave of

money for them. But there is this have and have not question that I think we we as a as a newsroom, have spent a lot of time thinking about and talking about and reporting about, and I think this story is another version of that. Because there are the the America's and granted there are a few countries quite like ours that can pull off pull off what we can pull off, and that leaves the rest of the

world in a different predicament. And especially for the load of middle income countries, the options do not look great um. And these vaccines are not always cheap um. And so that brings in a question of soft power. Well, so, James, let's bring you in here. What what stands out to you? Um as you were writing about the story. Yeah, we'll get to be with you. I mean, I think you you nailed it, you know, in terms of the debate, because um, I think it's an important one to have.

You know, these huge sales that you mentioned that are flowing to the vaccine makers raise that question right of what is a fair price and what is a fair profit UM in the middle of a raging pandemic. You know, and as you say, these vaccines are saving wives, they're rescuing businesses, allowing countries like the US and the UK

where where I am, to reopen. Obviously that is mentally valuable to those countries that are UM fortunate enough to have vaccines, but you know, vast parts of the world have this limited UM access and some of the people I talked to for this story question, you know, what level of profits are are justified given that uneven dis abution we're seeing and given them many of these vaccines are heavily funded by governments, by the US, by the UK, Germany,

and some nonprofits that themselves received funding from governments, and there is an interest beyond the humanitarian one is you know, as we've written a lot about and discussed UM, you know, there's a lot of steak from a from a health perspective, in an economic sense as well. If this virus keeps circulating, new variants could emerge that could be you know, problematic,

and that could prolong the pandemic. So you know, this is an important issue and it's not just a question of the availability of vaccines to win these countries will get access to these shots, but also whether they'll be affordable uh when when they when they finally do get the chance to uh to purchase them. So I think

it's a I think it's an important topic. Well, it's it's something that we're seeing play out right before our eyes with the delta variant, if we were able to you know, this is the variant that is is more concerning than other variants that were predominant here in the United States just a few months ago, and it's certainly ripping its way around the UK and indeed the predominant variant of new infections here in the United States, and it's certainly concerning. Um. I wonder about some of the

examples that you write about. Take us into what you learned about Senegal for example. Yeah, Well, we looked at we looked at some countries around the world and um, you know, the thing on pricing is that there's a lack of transparency and there's very little disclosure about who is paying what. So some of the prices are starting

to emerge. You know, We've looked at some regulatory filings Uh, you know, government statements and some of the sources that we've talked to, and you know, you can start to paint the picture. But you mentioned Senegal. You know it's a lower income UH country. They are paying uh, they agreed to pay about roughly twenty U S dollars a dose for Sign of Farms vaccine. Now, this is one of the Chinese vaccine makers that we talked about in

our piece as well. And now you know, you can look at some of these prices and say, you know what, that doesn't sound like a lot given you know, the potential of vaccines, given what we're talking about, and also some of these costs, to be fair, you know, they pale in comparison to the the economic costs of of not vaccinating your population, right, I mean you consider the

trillions of dollars globally that that's at stake. But for a country like Senegal, um, you know, I mean we look at some data showing that they're um annual per capita health spending is less than sixty U S dollars And for a lot of these for a lot of these countries, you know, they're they're grappling with multiple health threats. Uh. You know around the world. They're obviously diseases like malaria and HIV and many others, and these are you know,

stretched health. But just that these countries are working with and you know, they're not in a position obviously to spend big vaccines. They might be able to do it, they might be able to pull it off, but then that raises the risk that they'll have to divert spending from other areas to to pay the bill for vaccines, and that could have a long term impact that will be writing about probably for years to come. And that Actually there's this great quote that I loved in here,

which is this is essentially a seller's market. And that's a quote that refers not only to uh, what the US companies can charge, but also even the Chinese ones. What's I found surprising that in some cases the Chinese vaccines cost even more than the American ones, just bite

maybe not having the same efficacy. Absolutely, And the China side to this, I think is is fascinating because there has been a focus you know, we have done some stories on this, but looking at the geopolitical benefits to China gets from exporting vaccines to the world, but overlooked perhaps is the financial benefit to China. You know, China, you may recall last year talked about vaccines being a global public good. You know, they wanted to treat vaccines

as the global public good. And you know, we're finding now China, Chinese companies are finding now that they're also you know, turning out to be lucrative products for Chinese companies as well. And now, you know, one person I talked to with the counsel on Foreign Relations pointed out that China likely sees that as something that's actually beneficial. You know, they can benefit the world can benefit from uh their vaccines. But some of these vaccines are not

cheap that the Chinese companies are selling well. It's a fantastic story by James Payton along with John Lawerman. You can read James a story on the Bloomberg and at Bloomberg dot com, Slash business Week. James Payton his healthcare reporter at Bloomberg News. Joe Webber, editor of Bloomberg Business Week, Joel's with me in the Bloomberg Interactive Broker Studio. This is Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes.

Tim Stinovic on Bloomberg Radio. Hello. Hello, it's Bloomberg Business Week. Tim Stinaback live in the Interactive at Broker's Studio in New York. Carol Masser taking a well deserved day off today. Well, Andy Jasse, it's day two for the brand new CEO of Amazon. Shares of Amazon are hired today by four point seven and nine percent as we speak, reaching a new intra day record. But he's got his work cut

out for him long term. Jasse has to navigate Washington and European regulators, and of course appears a growing workforce of hundreds of thousands of warehouse employees. Heather are Younger as founder and CEO of employee Fanatics. It's an employee experienced consulting firm. She joins us now from Denver, Colorado. Heather, it's great to have you. How are you. I'm doing great, Thanks for having me on. So what is the advice that you would give Amazon's brand new CEO, Andy Jassy?

Who mind you? Has been somebody who's been at Amazon for decades. He's most recently had of a WS in his first week of of being CEO. Well, I think no matter what, he needs to be really clear up what type of leader he's going to be, uh, and how he might be different from Paseos of course, and even though he's been there, you know, setting his mark, deciding what kind of leader he wants to be and how he's going to show up for all of those hundreds of thousands of people who are looking to him

for leadership. That's that's one thing I think. Secondly, Um, he's going to need to take some real clear steps to listen to those people, because I'm not sure anybody has been listening and understanding what their needs are, what their complaints might be, and just to be committed to

doing the right thing as it relates to them. It's so interesting that you said that that element of listening, because when I was reading the notes that our producer Paul sent to me, Um, you mentioned listening and it struck me because, as as I mentioned earlier in the show, I just finished We're Colleague brad Stone's new book about Amazon, and I was struck with many parts of it. But he shares this story from a little over a year ago April, when the United States, in the midst of

this pandemic, Amazon is hiring so many new people. These are essential workers, the service quickly becoming essential to people who are in lockdown and need to get groceries and supplies. And Jeff Bezos made a surprise visit to one of Amazon's warehouses, but it was the first time that he had visited one of those fulfillment centers in years. Yeah, and I think that's a really big mistake. I'm hoping that Jesse says, you know what, I'm going to be

the listening leader. I'm going to be going around and I'm gonna do a listening tour, go to as many as Sinners as I can, even if it's virtual or in person, but in person probably better, so we can really see how people are living in the in the way in which they have to work every day and

trying to trying to get their work done. So yeah, I hope that would be his first step as listening tours, just going around, Um, you know, the listening is it's no It'll go a huge way for those people because they hadn't been listening to They people know when they've been heard, they know when they're cared for by the leaders who they look to for guidance, and that would build a level of trust that he needs right off the bat, particularly any new initiatives he's trying to get,

you know, put through. How does he do this at scale though, because this is something that Amazon is a unique piast, right, it has fulfillment centers all over the world. Is that hundreds of thousands of employees. How does Jesse do this in a way that makes it look like he's going on He's going beyond just doing it for show. Yeah, I mean in the end, he doesn't have to do it all by himself. He can have the whole feast me.

He can have outside consulting firms like my employee Fanatics right come in and help with some of the listening sessions. In the end, it's when they know that they are being heard and that there's an intent to act on at least some of what it is they're saying, and they see the results, and then you feed them back do action, telling them what it is you're doing for them. They know they've been heard. It makes it just makes

a huge difference. It validates it. It It makes them feel that the world that they're doing is meaningful and they feel like there's more than just the day to day, but that there's it's leading to some bigger mission for the world. Okay, so apart from the listening tour, what else can Joss you do, especially when it comes to

working with other executives to help build up that team. Yeah, I mean, I think you know, right off the bat, if he's able to establish with his leadership team that that things are going to change, that it is going to be about making sure that they're driving a more positive culture, and that every one of those people on the leisure team has to take responsibility so he's not in it all by himself. That will be super clear.

Making sure that maybe he does put someone in charge that really is super focused on having the pulse for employees, suggesting really good avenues for cultural improvements um and making sure that they're always keeping those at the front line of the customer experience right at the front of all their cultural improvement so that they're you know, it's not so just coming from top down, but maybe he creates culture teams all throughout the organization and they report into

this new person, but making sure that there's someone that has the pull. I think the other thing through all of this kind of cree time is making sure that that he and his team, and the the team members can be adaptable, less fearful, and they'll be less fearful, more adaptable when they're aware of changes that are coming down the pipes and being super open and communicative about this. You know, it's interesting that this is all happening at the tail end at least in the United States of

the pandemic. And it was announced at the beginning of the year back in January, that Jeff Bezos would be doing this, but it's still the pandemic. And one thing that we're seeing happen around the US is employees uh leave firms for new jobs and in some cases, uh not even going into the office to be able to say goodbye to employee until their colleagues who they've known for years. Because of just where we are right now.

What are the takeaways that we can learn from a transition like Bezos and Jassy's that that we can all apply to our own corporate lives. Mm hmm. I think is this idea of reinvention is a big one for reinventing. You know yourself as a leader, and then how do you and then if your over the organization as a beastly as Almazon, how do you kind of reinvent, but don't do it in the stylo and don't just do it at the leadership level. How do you? How are

you more inclusive in your decision making? Um? I think that's gonna be the biggest thing for leaders coming forward. And and I'm not just talking from you know, the marginalized group side, I'm just talking about generally, how are we more inclusive in the decision making process that people feel bought into things? And when we're talking about these people that are not coming back, it's probably because leaders aren't getting a clue. They don't understand what it is.

They're people needed from the beginning. They needed to be listening and they needed to be more inclusive. Thirty seconds Heather, we uh, you know, we know on Wall Street leaders of publicly traded companies are judged by returns. How are you going to judge Jesse? You know, I hate to say it, but those those news articles, the things that you see, the coverage that's happening with employees and sour

paces leaving their mouth. I think I'm gonna judge him by how how that goes down and if it's gonna be if he's gonna be able to turn the tide of the negative culture and bad press that they're getting. What is he going to do us to his mark to create a more positive culture. Yeah, it's a really good metric to use. Heather are Younger is founder and its CEO of Employee Fanatics. It's a firm that works with companies to help employee experience. Heather joining us from Denver, Colorado. Heather,

thanks so much for your time. I'm roc a journal Yeah, but you let me drive? Oh no, no, no no, no, honey, please, I'll do the riding revel with me. I want to drive all just drive, baby, the questions trying. This is the drive to the close community. Thanks, we'll driving us down on Bloomberg Radio. Yes, indeed it is that time, the drive to the clothes. We're just over ten minutes away from the is the market on this Tuesday, June Lie six. But I used to saying July. We are

more than halfway done with the year, after all. Joining us now is Randy Watt's chief investment strategist at O'Neill Global Advisors, joining us on the phone from Miami. Randy, how are you this afternoon? Tim? I'm I'm well, I hope you and your family are well, and it's good to hear your boys. Yeah, it's good to hear yours as well. Thanks so much for taking the time. We're doing well. Thanks Randy. Take us into how how you're

thinking about the market. I mean, look at what we're poised to do today, the sp five looking like it's going to snap a seven day winning streak, the Dow down today for the first time in five sessions. How are you reading into it? Well, I think technically there's a slight lag right now if the S and P versus the Nasdaq that's really being driven by a rotation

into large cap growth stocks. The market, though, overall, is trending within a channel that has really dated back to November, with the upper end rising to about and the lower end of the fifty d m A which is about eleven. Well right now, the leadership is in tech, retail, and healthcare.

Some of the more cyclical value groups like transports, materials, financials have been basically consolidating their gains from earlier in the year and probably need a little bit of time to go go sideways before they make another thrust up. How much higher does this bullmarket go. I think it depends on two things. It depends on earnings and it depends on yields. As you mentioned a minute ago, you know, the ten year back to one five because an awful

lot of valuation support for stocks. I think the thing investors are wrestling with right now is coming out of that that first quarter earning season, earnings estimates went up quite a bit for the S and P. People are looking for a D eight dollars and earnings this year and two eleven for next year. If those earnings come through, I do think there's upside on the market because the

market would be about twenty times next year's earnings. But I think what investors are wrestling with is two things. First is is there going to be a margin squeeze in the second quarter. So we've seen a lot of costs go up, whether that's raw materials excuse me, raw materials or average hourly earnings which are obviously labor costs

are going up here. And then I think the second thing they're wrestling with is because there are so many supply shortages, both in materials and also in labor, are coming to am Able to meet their production schedules for the for the second quarter and for the third quarter, and so I think that's why you've seen a little bit of a move back to growth here, is that

people aren't sure whether they should trust those earnings estimates. Well, where are you on the transitory versus not transitory debate? Because when you when you talk about the margin squeeze here, what you're talking about is higher input costs and to what extent those margins are going to be hurt by those and by a difficult time getting supplies and inputs. Um is this something that's here to stay or is this something that is indeed the word in the words

of the FED transitory. I think it's less transitory than people people are. Why why do you think that? I think for two reasons. First is that because people are having to offer workers high wages and many jobs than they did before the pandemic. And once labor gets back up,

it's not like they're gonna lower those wages. Right, So, if you had someone in the kitchen in a small restaurant, you're paying eighteen dollars an hour, and now you're paying him twenty, you're not going to cut it back to eighteen. Once there's a little bit more labor force, you're gonna keep paying him twenty and and the second is other elements like rent. Though it's been down in New York City, it's up in a lot of places around the country,

residential rents. I don't think those are reverting down, you know, anytime soon. So I think there's some things that are going to be stickier than people suspect. So I do think inflation is going to run higher. To refresh for your for your listeners, inflation was five percent for twelve months at the end of May, So inflation is running high.

It's been a problem. I think the FED and many central banks around the world are willing to let these economies run hot because they're worried about, uh, the slow down that we're coming out of. But I do think

it's an issue. Yeah, And look, you're you're kind of reading my mind here because of the stories that I want to talk about in a few minutes is by our own Alex Tanzi talking about how storing us rents are the sticky part of inflation with staying power and according to Apartment List, the median national rent climb nine point two in the first half of UM that's according to apartment list. So so that raises the question. You

talk about rising rents, you talk about rising wages. What are the other metrics that you're looking at to tell you whether inflation is sticky. Well, obviously commodities are up a great deal when you look at the commodity index, you know, oils up year to date, aluminums up twenty nine, coppers up twenty two, and a lot of these. Because the supply shortages are not going to instantly go back down, but they may go back down over time, but it's not like it's going to happen in the next month

or two. So I think that's going to force companies to pay some issue with either they have to let their margins get squeezed or they're gonna have to raise price. And if they raise price, what is that going to do for demand? I do. I don't want to sound to bearish. The economy is recovering, we are growing. It's just like the market's got a lot of good news in it and we need those earnings as stims to come through for the market to continue be able to

move higher. Rights So so you're saying the market's gotten a little ahead of itself. I think the market is a little ahead of its self right now, but it's been supported by those low yields. Now, if the tenure was higher, we'd be having a different conversation because there would be pressure. But I think the move back to growth stocks recently tells you that some investors are nervous about whether that out your number of two eleven is

the right number. Yeah, look, I guess also the question is is really about how to be defensive and not necessarily that you need to be defensive, And that's not what I'm saying, what you're suggesting, but it does sound like that you know, you could be in for a quite the ride, and how would you position your portfolio right now? I mean, we do like some of the big cap growth stocks still. We do like healthcare. Healthcare

in particular. We think it's going to have a better second half of the year as the utilization rate of health care services gets back to normal. Obviously, there are a lot of healthcare areas that suffered during the pandemic as people didn't want to go to the doctor. They didn't want to see their oncologists, they didn't want to see their they're cardiologists. So I think that's gonna that's gonna pick back up. We still like a lot of

areas consumer discretionary. People have been pent up. There's an awful lot of consumer savings whity to get spent. People didn't buy a lot of clothes and shoes, etcetera. For a year. Now people are going back out. We like the travel space, hotels, airlines, etcetera. So I do think there's still a positive story with regards to this recovery. But I do think maybe some of the raw materials, transports, financials a little bit ahead of themselves, so I would

shy away from those in the short term. Let's talk a little bit about some of the stocks that you are bullish on. Intuitive Surgical, the maker of the Da Vinci surgical device. Why are you so bullish on this? I think there's a real secular theme going there. There there's two things. There's a cyclical in the secular. The secular is that a lot more. They're a leader in laper scopy, so operations that are done very minimally invasive. They're the clear leader there. More and more operations are

being done that way. There's a great expansion and that's going to continue. Second, people put off elective surgeries over the last year because of COVID, no one wanted to go to the hospital. And I think now you're going to see things like hip replacements, new replacements, etcetera start to pick up, and that's going to really provide a nice tail win too. What's already a good secular story

for an industry leader. Okay, what about Nike. You know, Nike had had had a great number of last quarter. We're seeing we're seeing a pickup in demand. I think people are spending more money on both apparel and on footwear. They continue to do well overseas. They've done a great job with expanding in Asia. They've also done a great job with their digital marketing and e commerce, which is

going to continue. So I think like Intuitive Surgical, they benefit from both the cyclical pickup what's going on right now, as well as with Nike as secular pickup as they expand into apparel more, they expand in Asia and they get more of their orders coming in digitally online. Randy, we are going to have to leave it there. It is always great to shot with you. Thank you so much for taking the time and joining us on a

Bloomberg Business Week Radio. That's Randy Watts, chief investment strategist at O'Neill Global Advisors, joining us on the phone from Miami. 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.