Fully Vaccinated Can Forgo Masks in Some Outdoor Settings

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 Listen. We went over the big headlines that came out just about two hours ago about the CDC issuing new masking guidelines for fully vaccinated people. Were President Biden Tim come out and talk about it.

At the same time, there are two new cases of blood clots linked to the J and J vaccine, and you've got you know, countries around the globe looking to help India because we know, as was reminded in kind of a newsroom note today that as when we talk about the vaccine feels and the virus, it feels pretty good in the United States. We've made a lot of progress, but you look to some European nations, and you look to the developing world, and you look to India, they

are still struggling big time. And look, that's a really important point. The fact is the United States is doing really well, but it's among only a handful of countries when it comes to vaccinating so many people. Yeah, so let's talk about it, and let's talk about where we are and where we go from here. So great to have back with us. Dr Dave Westerner, he's professor of biology at Davidson College. He's on the phone from Davidson, North Carolina. Dr Westner, nice to have you back here

on Bloomberg Business Week with Tim and myself. You know, on our planning call today are producer Paul Brennan reminded us that the last time we talked with you, we were talking about double masking, which is what I often do, uh in the office outside the office still and that was just a few months ago. Now we're talking about conditionally taking off our masks in public. Have we gone too far too fast in your view? Yeah, Well, thanks for having me back to Yeah, it's situation. Things change,

Things change, quickly. Um. Yeah, I think given the evidence that we have now about how good the vaccines are working, um, I think it's worth relaxing some of those restrictions for people that are fully vaccinated. I think that the challenges you know, if you're out in public, you don't know what the vaccine status is of someone else. So I

think that's where it gets a little bit tricky. And it really seemed like with the CDC's presentation today, Professor, that the point was to really get those people who haven't been vaccinated yet, provide some sort of incentive, and to really show them, hey, this thing works so well that that these are the things you can do. But I'm wondering did it not go far enough? Yeah? I think you know, the vaccine rollout I think has gone pretty well United States. We had a rocky start. I

think things now are going pretty well. But the big concern is that group of people that are vaccine has how do you get them on board to get the vaccines? And Yeah, I think you're absolutely right that this this is sort of a you know, uh, carrot approach. You look, if you get the vaccine, here's some extra things you can you can take advantage of so hopefully that will commit some people that have been on the fence about getting the vaccine. What do you say to people who

are still afraid about getting the vaccine? Because I know people within my sphere that are definitely saying, Yep, I'm not comfortable. I'm gonna still wait. Yeah, I think you know, follow the evidence. I mean, the evidence suggests these are really effective vaccines. The evidence suggests these are really safe vaccines.

I mean, despite the stories you've heard about the blood clots and potential association with the J and J vaccine, I mean, everything suggests these are really safe and extremely effective vaccines. What about from a public health messaging perspective, because there there are questions about whether former President Trump should come out and give sort of a big endorsement of the vaccine and and really messaging to people who follow him closely that this is the right thing to do. Yeah,

I think those kinds of public announcements certainly help. I saw, say, the other day with Foreign President Obama and m Charles Barkley and Shaquille O'Neil um, and they were specifically targeting the African American community to get vaccines. But yeah, I mean, those kinds of public statements by public figures certainly helping,

and we need more of those. What do you say, you know, I think about the science and I did uh some reading into the vaccine and the research to kind of understand it, if you know, just so that

I knew what we're dealing with it. What is the science behind the process that we got here in terms of the vaccines that you think if you you know that you can share and remind us all that maybe would put some people at ease, because I think there's still a feeling Dr Wessner that we rushed through this and we did right, but the science isn't brand new right exactly. And I think that's an issue we have talked about before with when I was on with you.

Um yeah, I think the the approval of these vaccines happened quickly, but I don't think it was rushed. I mean, we had trials just like you would with any with any drug, any vaccine that's getting approved. You know, there are some people in the the Fiser vaccine, some in the MODERNA vaccine. Uh, you know, we went through those double wind trials. We have good data about the efficacy of these vaccines UM and we had good data about

the safety of these vaccines. Also, I think, you know, anytime you're going from forty people to millions of people getting vaccine getting vaccinated, you know, there's gonna be the chance that you see some issue that one in a million event that you're not going to catch, you know, even if you have people in a trial. But that's always the case with with new pharmaceuticals that are being developed.

So so I don't think people should worry about the process being being rushed um and for the basic science. You know, again, the there's been a lot of talk about the MADERNA and fives are being these MR and A based vaccines, which is something new. It's it's new in that we haven't had human vaccines using those technologies before. But the basic technology scientists have been looking at, have

been experimenting with for a couple of decades. It's not something that was just invented out of out of the air over the last year. And we're not changing genetics with these vaccines, despite what, despite what people on Twitter get in touch with us about. Right. That's another another concern that you hear in various places that because the vaccine is injecting RNA into your cells, it's going to alter your RNA or also your DNA. That's that's not

the case. The RNA that's getting into your cells through the vaccine is very short lived molecule. It degrades very very quickly. It's just in there for a short period of time. Your cells are producing some of that spike protein. The immune system is recognizing that acting against it, but there's no long term change to your cells because these vaccines,

Professor Westner, let's talk variants. There's a Bloomberg Intelligence report out this afternoon from Sam Fazli, our colleague at Bloomberg, who says that the virus variant from India seems like it responds to ASTRA and likely all vaccines. Are we seeing right now any variants able to really get past the existing vaccines right now to an extent that should

be alarming to us. Yeah, that that's a good question, And so far it seems like we have not seen that um that variant that can that can evade the existing vaccines. U The CDC categorizes the vaccines as variants of concern and these are the ones we've heard about. The UK variant, the Brazilian variants, South African variant, and then the higher level from that is the variant of high consequence, and that would be a variant that can escape the existing vaccines. UM, and so far we don't

have a variant identified in that in that category. Use, different vaccines are going to have different efficacies against different variants. That as not as surprise, UM, but so far it seems like the certainly the Maderna Advisor vaccines are pretty effective against all the all of that variants that we've identified so far. How does this work though, terms of variance mutating or having viral variants? Right, we have it with I'm assuming the common flu. Right, this is why

the flu vaccine gets tweaked often every year. But when is variants normal and manageable versus variants being problematic and creating another pandemic. Right, You're absolutely right with the flu analogy. We have a new vaccine every year because influenza virus mutates very rapidly, and we see slight variations in the strain of the flu from from year to year. Generally speaking,

coronaviruses do not mutate as rapidly as influenza viruses. So it's not that big an issue with coronaviruses, but they do mutate over time. That's that's natural. You are going to see variants, and I think what we have to do as as researchers is really stay on top of what variants are we seeing in different locations. We've heard a lot about genomic sequencing of the bio us. Um. That's something the US did not jump on early enough

in my opinion. Um. But we have to keep that that genomic sequencing up so that we can identify those variants as they appear and then look to see if in fact those are causing infections people who already had been vaccinated, indicating that they may be they maybe breakthrough variances. Are we doing that? Are we keeping on top of that? I think we're doing a better job now that we were six months ago. Um. Yeah, I think it's one of those those deals where you can't be doing good enough.

But I think we are doing a better job now of of monitoring the appearance of new variants. So one thing I've been thinking a lot about is is how the pandemic ends now that the United States is on a good path to vaccination. While at the same time, the rest of the world really isn't How do how does this play out? Like, what are we talking about a year from now? That's a great question, um. You know,

I think there's a couple of answers. You know, as long as the virus is mutating very rapidly throughout a population, whether it's India here in the United States to some other place, there's the potential for new, very dangerous variants to arise. UM. And I think that's that's one of the UM arguments in favor of the US sending vaccine doses to to India. UM. Sixty million doses for India

as a drop in the bucket, I know. But but having us help another country get their population vaccinated, UH is potentially beneficial for US because it's eliminating the chance of new variants appearing someplace else. UM. But that's what the other side of the question is. You know, are we going to eliminate this virus? And I think everyone agrees the answer is no. It's not going to be like polio or smallpox or one of these viruses that

we can almost completely eliminate from the human population. I mean, more likely, it's probably going to become a recurrent issue that we see much like influence of viruses, dar to Western twonds. Do you see if we get to a place where the world feels like it used to be? Yeah, good question, and um, largely yes, I think. I think there may be some things that never go back completely normal, but but largely yes. All right, we're gonna leave it on that note. I like that optimism. I will do.

Dr Dave Westerner stay safely Well, Professor of Biology at Davidson College, on the phone from David's in North Carolina. You know, I feel like Tim, with everything that we do, all our conversation, especially when it deals with vaccines and COVID specifically, there are caveats. It's just the way it is. Yeah, there's so much uncertainty right now, but that's something that it seems like we're getting used to, Yeah, exactly, and

figuring out our way through. You're listening to Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. This story definitely caught Tim in my attention. It's a story online of Bloomberg Business Week. It's about how, for almost a decade the movement to push businesses to pay at least fifteen dollars an hour. Tim, It's definitely gained momentum, but the US is largest employer. They have

constantly shot the argument down. So let's get into that snow. Yeah, that largest employer being Walmart of course, Miss buck Leasy, reporter for Bloomberg News, joining us on the phone from London, Thomas, thanks so much for joining us on this. Uh. When I read the first sentence of this story, I was

immediately drawn in. Who is Mendy Hughes so menty she associate it's Walmart for some years now, and she is still earning eleven eighty five dollars an hour, which makes her really an outlet for a number of similists similar employees at the likes of Amazon and best Buy It. And how I gets all of whom pay fifteen dollars now? And thanks so much for having me, guys really appreciate it. Yeah,

no problem. One thing that and one thing the reason this what I mean among the many things that just kept surprising me word afterward in this was that Mendy is is the person who has been working there for more than a decade, And what Walmart says about its wages is that it's investing in people for careers, not for jobs. But her pay seems to indicate that she's not being rewarded in that way. That's that's really right.

So she started out, I believe, on seven dollars an hour way back when, and that has increased to eleven eighty tide, I think that it's not increasing anywhere nearest staff that she would like to see on the basis that you know, as the story when she's short on launchables or frozen TV, then as you know, she's having stopped by the drive through McDonald's to her pick up you know, and items from print the venue, from the

value menu. And also to that point, I think that's a number of her colleagues, you know, survive on on the food steps. So on that basis, I think it certainly would want to be seeing a raise that's commensurate with what Walmart's rivals are doing. Walmart's argument as long being that really seeking to protect ladder of opportunity, wherein you know, people's individual ambitions will be rewarded as they

rise up in the business. But sounds like Mendy, for example, who has very immediate concerns, or who have had very immediate concerns, such as say, tearing her out of a c L and falling behind on medical bills. They're not so much thinking about the next job, but more you know what neediately has to happen for them to live at the very basic level of dignity. I think, so help me out here, Thomas, because I think there are

probably people who are listening. First of all, the math that eighty five works out about four hundred seventy four dollars a week, about twenty four thousand, six hundred a year. So that's what she's dealing with. And she's got a family. Now, I know that there are people listening saying, well, wait a minute. You know, maybe she works harder and then she can get a better job until make more money

and more benefits. There's that argument. At the same time, you know, you live in different parts of the country. These are the jobs available. And this is a company, Walmart. It's a wealthy employer, absolutely, and you know, more than a wealthy employee, which they certainly are, but you know, really the world's wealthiest family, America's largest private employer by far, and you know it gives you an idea of what it would take to get to fifteen dollars, which they

have done as an average but not a minimum. That is what they announced them in February for several of the several associates. I mean, you know, the amount they're spending getting to that point, it's only about ten percent in maybe even less than ten percent, with the amount that they're spending on shared by backs because at the same time they're not dis initiative. They also announced twenty

billion shared by back initiatives. So it's certainly an employer to can afford to pay its employees fifteen if it wanted to write. As you mentioned, their annual revenue increased a thirty five billion to more than or by thirty five billion to more than five hundred billion dollars in the past year to earn twenty two billion in profit. Listen, I am all for capitalism and people making a profit. I think it's really wonderful and it's I think the

basis of our country, no doubt about it. What is the argument that Walmart puts out there in terms of not being able to pay some of its workers more money. I've been at those annual meetings where workers stand up and say I work for you full time and I'm also getting welfare. How does that make sense? And what is the responsibility of an employer like Walmart who is facing the big beheamoth of Amazon who says you can probably get a cheaper at Amazon for sure. I think

it's a really interesting question. I mean to your points about capitalism, you know, really being the growth engine that so many develops economies of, you know, the past countries. I think that what we have come to see is that you know, you're sort of driving um this this economy in a certain direction in the case of Onemas because you now you are America's largest private employer, which means that you know, you have a responsibility to lift a lot of people up um and you know, guarantee

living to to the people that work for you. Where it becomes complicated is that the CEO doesn't millanswers that he wants, you know, to really stagger wage increases in the way that benefits the UK economy. So that means, you know, creating the right level of ambition within the company to see people rise um. But as I mentioned earlier, you know, people who have a lot more immediate needs, including those on food stamps, might not necessarily see it

that way. Um and in the case of men, need sure earlier in to know what if she worked a bit harder, a bit longer. I mean, this is something you know, just pulling forty hour weeks, those who you know, spend standing up the entire time at times. I'm playing Devil's advocate. I just hope you know I'm playing Devil's advocate. Go ahead, please, absolutely, absolutely, but just just to use you know, the specific example, because she is she is one of you know, seven hundred and fifty thousand people

at that level of employments at Walmart. So these are incredibly difficult shifts, and you know, they're very critical shifts will have been at least over the past year when shoppers have come and then have needed the cashier to s in the right direction for their life, al their death,

holl and everything else. Notice it's a very interesting, interesting dynamic rob serving at the moment it is Thomas, and I'm I'm wondering why the market hasn't actually pushed the wages up because Amazon got out ahead of this and said fifteen dollar minimum wage, and it has served it pretty well Costco. Costco has gone up to sixteen dollars an hour, Target has announced increased wages. Why hasn't the market done this to Walmart? But that's a really fascinating question. Um,

I think that you know, it's used to be. I suppose all companies in respect were very much on even keel paying stw wages, and everybody was just gaving this, you know, waiting to stick are out who would take the steps to rape it stuff, whether they would remain in the outline, you know, in the near or median tern, And then all of a sudden, Walmart is sound as well as a bit cornered here because everybody has decided to lead from them to raise wages, and they are

you know, I've heard the story, a very clear outline in this, and I do wonder, as you know, BSG trends gain momentum, whether there will be that added pressure on America's largest employer to actually do something about this. We shall see. And as you say, for for Mandy Hughes, I mean she's looking to leave Walmart, get out of Arkansas, and she says, I would love to get out of Arkansas. I could afford to move and that's the other tricky part. Listen,

this is a really important story, Thomas. Thank you so much for bringing it to us. Bloomberg News reporter Thomas Buckley joining us from London. Check it out at Bloomberg dot com. You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. We got to talk about Tesla, and we got to talk about the disc because investors Tim not that impressed by Tesla's record profit in the first quarter, record profit.

Chip shortage that hey, wasn't a big deal to Tesla has really been a thing that has really hampered looks sidelines some companies. Yeah, exactly, stocks down four present today near its low. So let's get into it. How come? Ben Kylo is senior research analyst, Britt Baird Kaylo Calo excuse me? Ben? Hello? Do you think I would know this senior research time? Ben? You know it's been a while. I kind of like, well, and and we've probably talked

for ten years. Tesla. It's okay, I mispronounced my siblings name. We should to two worked up about. But I'll let you take it from here. We'll talk to us about that. You've got an outperform, you've got a price target of seven thirty six. Stocks now at seven oh six almost seven oh seven to share here, Um, what's what's the problem with investors or what do you think that they're focusing on and maybe that they shouldn't be been well?

You know, I think that there's there's always been a lot of noise, and I think one of the biggest things that we took away from the call last night has you know, the Model three is selling more than a BMW three series. If we take a step back and like we go back to like five years ago or seven years ago. I don't want to age us, but we can't age if we need go back that far.

It's like no one thought that we were going to get here, right and so uh, you know, the expectations are extremely high, obviously with the evaluation of whatever it is, six seventy eight billion dollars. Uh, there's a lot uh you know, people are asking for UM. But I think that you know, the big things taking away from the car are number one, demand uh stronger than ever. Number Two, the plants that they're building uh in Berlin and Austin and then expanding in Shanghai are going to only help

them with profitability. Um. And I think the third thing is that you know you have Ellen that you know, he plontificated about Taunament's driving for for a lot of the call last night, and you know he just sent four people into the space station, and so for him to say it's one of the biggest problems to tackle, I think that people you know are are are focusing on that, um and rightly so you feel like Ben

and Ellen together dropping the mic. Well, look, I I do wonder though, Ben, if this is if this is about guidance, is this is this about the company not saying how many cars they're going to deliver in I think it's just people running up a little fast money into the into the quarter and it's a little sell office to be expected here up. But to your point him, I think, uh, you know, costs are going to come in.

But I never recovered Amazon, but I imagine you know, as Amazon was growing, they start spending more money, and so you see on the op X side and operating expenses that picked up. And so I think we saw some of that with Tesla, and you know in in you know, people put points to bitcoin and they made some profits of bitcoin and and this and that. But that's been the story for you know, eight nine years. The earnings have been clean, but they still have earnings.

Hum and so, uh, you know, I think there's some of all that going on. So how concerned have you been about all of the new competition? We keep talking about the green wave that's going to hit this year. It feels like finally, finally the global auto industry as well can happen. Oh wait, maybe Ellen's onto something. So how do you see it? Is that going to be problematic? They're already to be fair to Tesla is losing some

market share in the US. Yeah, So I think the big the big things that we have to watch out for is riv and uh private company I think, you know, on the on the consumer side as well as on the commercial side. I think Rivy and obviously have Amazon as a partner and so um and after that, I think Folkswagon is probably the most uh a near term threat to them. But you know, competition is always something

that we watched and we don't dismiss it. And uh, you know, they're always have been five years behind and the scale is one thing that I think that you know that a lot of doubters of Tesla have missed how you know, how rapidly they've scaled up with those factories of what I talked about. Yeah, Ben, Well, what kind of expectations are are built into the stock price right now, like what our analysts expecting, because that's also

can be part of this story. Right with what we saw yesterday, it was a really great quarter for the company, but hey, that's expected with what happened in the company's stock. I think I think that there's considerable expectations built into the stock um. I do think that you know, one of the things that you know is is a call option or upside option is you know, I I focus on renewable energy as well, and and the the energy storage piece of the business, uh, and the momentum that

has and the software that that they have behind it. Uh, it's you know, AI hate to use your buzzwords, but behind that and you know, and building out power plants on lifing mind batteries and solar I think that that's something that's underappreciated there and and it's maybe built into that market yep. But it's also offside that. And I'm a meet Potato person, so I don't I don't do robo taxi kind of stuff or anything like that. But that's also that's also probably an offside to it as well.

By the way, Ben Callo, you've earned the right to use buzz words like a I'm just gonna put that out there. Ben. Good to hear you again. Thank you so much. I always appreciate your insight on names like Tesla. Ben Kayla Calo is senior research anless at Bair. He's got an outperform rating on the stock price target of seven thirties six and as we mentioned though, Tesla seeing some pressure. I'm road mac a journal now. But you let me drive. Oh no, no, no no, no, please, I'll

do the right l let me. I want to drive. Just drive, baby. It's the questions. Get drying your job. This is the drive to the Globe community. Thanks. We'll drying us on Bloomberg Radio. Right just about Tim and is left and the trading day it is time for the drive to the close. Rebecca Corbyn is with US, founder and CEO at the strategic consultancy and research firm Corman Advisors. She joins US Tim on the phone in Farmington, Connecticut. Rebecca,

good to have you here. Just got a few minutes left in the trading day, but we've got a slew of earnings coming our way in just a moment. We've got Alphabet, We've got Microsoft, We've got Starbucks, You've got a m D. We've got Visa, We've got Texas instruments. I'm sure I'm leaving a few out here. How do you see kind of the market environment against the earnings environment? Well, first of all, Carol and Tim, thank you so much

for the opportunity to be here with you this afternoon. Listen, equities are very strong right now, and um, given where we are with regard to coming out of COVID, with regard to the true fundamental growth that we're seeing, I think there's room to run on these and we're going

to prove that out dis quarter. We have, heading into the quarter percent of investors in analysts that we surveyed as part of our Inside the Byside Earnings primer eighty investors in a globally we're expecting raises in guidance, and our analysis so far is that so many one percent of companies have indeed raised guidance, and so we're going

to continue to see that. So why are we seeing that play out in the way that investors are reacting because going into today, four or five companies that have reported earnings thus far have beat estimates, but on average, shares have gained less than one tenth of one percent after the reports. This is according to data compiled by Bloomberg. Is it just because expectations are so high and this is all baked in? Actually, it's because consensus is so low.

Uh seal Side has been notoriously conservative with regard to COVID. UH companies have been handily beating expectations. As of last Friday, SMP five Hunter companies that had positive surprises were eighty five percent of those companies that have reported against consensus. So I think we have we have a couple of factors here. We've got consensus, which they're handily beating. But why the why stocks are not necessarily on a care is because it's the old adage by on the rumors,

sell the news. These stocks are trading at all time highs. The expectations heading into earnings was sixty percent. Investors were expecting sequential improvement. Excuse me, seventy five. We're expecting sequential improvement and we're expecting beats, and so that's based into shares heading into the earnings. That's really been about the guides that companies have come out with, and we did

drill down into those guidance. Companies that raised their guidance at the midpoint of three hundred basis points actually saw four point four percent increase in their shares. Interestingly, not juxtaposed that against companies that raise their guidance in the zero to two hundred basis points, So companies that didn't as our guidance and companies that did but at our lower rate, we're up point nine percent on average. So

the market is rewarding big guidance outlooks in terms of increases. Interesting, right, And I think this is a quarter in particular that we want to hear from companies and the c suite about outlooks, guidance, visibility, and we're hoping it's going to be positive. Having said that, Rebecca, what you folks do so well is you do kind of track investors sentiment. What is what how do investors feel about this market environment right now? Frosty at the mouth, I mean it's

all about growth. If you look at our word clouds over four quarters, it was doom and gloom, gray and red and now it's really upbeat. So you know, were is it to froth girls happening? Because you know, I say think so? Okay, Now I don't think so. I mean, listen, we've got coming out of COVID, and you must look at sentiment as um a retrospective as well as a massive amount of you know, where we were and where we're going. You cannot look at it in a vacuum.

We came out of and we are seeing true fundamental growth. Companies are coming out with Q ones in the mainly you know, on average the companies have reported in the in the high single digit versus guiding to in some instances down to flat to low single digits. So we are seeing significant increases in growth. However, we also have on the opposite side, we've got massive inflation and we've got supply change. And what do you mean what do

you mean by massive inflation? What makes you so? Cost inflation, healthcare, labor, costs, UH, commodities, shipping, everything is up. And what's happening is that a lot of companies are pulling forward there buys and they're buying inventory, so that because they see prices increasing, saying that this any inflation that we see as transitory. So you're you're saying that's not the case. Well, what would you how

would you describe transitory? What? Temporary? Temporary? Right? Yes, well, listen, it's gonna take right now. We're starting to begin to see us inflation. We started hearing about it in Earnest two quarters ago, massive increase in inflation as a concern with regard to investors, moving from in the third quarter, you know, four mentions to now almost six times that amount that you know, and that's what they're hearing, that's

what they're seeing in earnings. But you know, Rebecca, what let me just jump in for a second because you know what Tim is getting to and this is something we have a lot of conversations with and and I agree that you know, depending on where you look. And we've certainly heard it from CEOs about rising costs and they're kind of holding off at least for the moment maybe of passing it on to customers. But is it temporary?

Is its supply change just catching up? Right? We have a lot of you know, the manufacturing capability maybe had held back because they had to during the pandemic because there wasn't demand, or they couldn't get the workers or what have you. And they're gonna be cautious before they ramp up because they don't want to do it too early. Is that some of what's going on, that disconnect between supply and demand. And it'll work its way out. I don't know whether it's six months. I don't know whether

it's twelve months. Yeah, well, of course it will work its way out. So you know, you have to work the cost through the system right and at the end of the day it will reach the consumer. But you know, there's value chains all over the place, so they are you will hear on earnings calls. You have heard on earnings calls companies talking about cost actions. They are passing

on costs. Typically they are saying that that's going to take you know, two to three quarters to work its way through the system with regard to you know, the the early stages, and that usually ends up at the consumer. So of course it will work out. And there is a lot of scarcity right now, so there's a tremendous amount of demand, but there is scarcity, and on top of that, we have you know, there's scarcity because of the demand. There's scarcity because there wasn't a lot of

production and there has to ramp in production. And then of course you have the port issues that are exacerbating that. So you know, it's it's something that companies will work through. Is it something that is transitory. It depends on how long you think transitory is. It's going to be a couple of quarders, but it's any transitory opening, right, Yeah, So it doesn't necessarily make you think though that the Fed is going to change its out look for interest

rate raising right based on that. Now, I don't think they're going to change their rate based on cost inflation at this level, and we'll have to see where things net out. We have other issues though, We have a pretty significant labor shortage and that's something else that we're identifying. So you have a conflux of factors that you know, this great growth that's happening, but there are some clouds on the horizon with regard to what could potentially stunt that. Yeah, exactly. Hey, listen,

just twenty seconds left here. The big tech that are reporting, we're gonna get ready for Alphabet and Microsoft and quick thoughts here, listen, I think tech companies are are always going to lead. It's about it's going to be about capital allocation and investment. You see a lot of companies talking about reinvestment, talking about digitization, talking about really moving into that next industry, Supper point out, and I think

these companies are going to benefit from that. Boy, it's like Elon must took a page from your playbook, because they definitely have been doing lots of capital allocation and capital investments. Certainly one of the names we've been focusing on on this Tuesday. Rebecca, Thank you so much, really appreciate it. Rebecca Corbin, She's founder and chief executive officer of Corbin Advisors, joining us on the phone from Connecticut.

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