U.S. Bans Travel from India as Virus Surges

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 Present, Biden saying it's gonna be a tough call on whether it order U. S. Troops to get vaccinated. It's funny, Tim, I actually thought the military was already getting vaccinated. But that's not the case. No, it's not. And look, I think this is something that a lot of organizations are struggling with right now. To

what extent can you actually mandate of vaccination? Yeah, exactly. So we've got that going on. We've got global cases of the virus topping a hundred and fifty million India remaining at the epicenter of the pandemic. They reported record new infections today. There's a lot going on. Let's get to it with Dr Ian LUs Bader, as we always do on our Friday's clotl a professor of medicine at n y U Land, going on the phone in Michigan on this Friday. Dr LUs Bade, are nice to have

you back with us. How are you good? Good? Always a pleasure, Happy Friday, guys. Oh my god, this has been I guess it's been a hard week. Um helped me out here because we did have a headline to Reuter's reporting that the president is set to ban most travel to the US from India. So I was having a conversation with someone and it's like, look, we're doing so great, and he's like, my wife, she's from India.

We're not doing so great. The world is still having a tough time, and we don't get through it, all of us until everybody gets through it. UM. I know we talked to you about this kind of almost every week at this point, but give me your thoughts on this, especially as we watch what's going on in Indian some other parts of the world. So as we talked about last week and really we're at the head of the curve. We knew that India was erupting, and uh, I don't

think we've anywhere near seeing the top. You know, we're estimating a hundred and fifty million global case, says. I think all of these are really gross underestimates. I think the ability for many countries to track the real number of cases is flawed. In Night and the Spanish Blue, it was estimated about a third of the world's population came down with a Spanish flu, higher higher mortality than we're seeing now. Uh, and that was before air travel

was really widespread. So I think this is really sort of the tip of the spirit of the tip of the iceberg as what we're seeing. And I do think, even though it maybe politically incorrect, I think a travel ban, even though that's very imperfect, is probably very reasonable to do based on what we're seeing in India. Why is that is that because of variants? Yes, so, I think

India has a number of problems. One, you know, for the skeptics of public health measures, this is really an example of what happens when there's really a systemic failure of public health measures. So one very low vaccination rate under ten percent to us uper spread or events that were really sanctioned by the government. And three perhaps maybe cremation, you know, when you're burning particulate matter, would smoke varions.

We know that there's higher complications in areas of pollution or smoke, so it's possible that may also be playing a role. But I think the key thing is lack of vaccination, and there will ques solution to that. My question also though, it has to do with why a travel ban would be the right thing for the United States right now, given that we do have have COVID

running rampant through the U s as well. Is it is the variance element, the concern that there could be a different strain of COVID brought over from another country. Oh for sure. Now we already have here in Michigan where I am at a college graduation h to be one six one seven variant. We've seen some cases in California. That is one of the dominant strains in India, and the problem is it may be somewhat resistant to the Fiser vaccine. That's unclear. We're getting some data on that.

And it also seems to be more infectious that it spreads more easily. So there are a lot of you know, potential issues here and uh, you know, some of those cases are also being seen in China. So we're nowhere done with what's going on. So how does it potentially impact the United States? Well, you know, I think the United States we're going to be okay. You know, we we unfortunately about of adults under thirty five had declined the vaccine. They have vaccine hesitancy, so we we have

to do a little bit better there. One of the reasons, for example, we can't mandate scenes generally is the feeling that it's under an emergency use authorization not FDA approved. So to make people take something that's not FDA approved does potentially cause a problem. So that may be one reason why we can't mandate it, although I will have to see what happens with that. But I think in the US we have about forty going on of adults vaccinated. I think we're going to be okay, but I'm not

sure globally that's going to be the same case. Hey, Dr les Bader, I'm I'm wondering about if we're going to just continue to see you know, a few weeks ago we were talking about what was happening in Brazil. Now we're talking about what's happening in India. Is this just going to keep going from one country to another country because of so many countries aren't vaccinated right now?

Is this how the pandemic plays out over the next year? Absolutely, you know, this is exactly what happened, well not exactly, but very similar to what happened in the Night Spanish flu. Basically, it went around the country exactly as it did in the United States. You know, we saw New York a year ago as the epicenter and people in the Midwest that, oh, we're safe now. It hit both coasts and the in the Midwest. Uh, and then it went from country to country.

That was primarily in World War Two with the troops, ships going to Europe and so forth. That probably helped spread it. But I think we're going to see continued multiple waves and unfortunately without vaccination, when you get mutation, and with mutation you can get resistant viruses, right, which is why. Yeah, and we're also talking about booster shots and something we maybe we'll get into in the next block. Ian Sit tight for a second and we'll come back

to you in just a moment. We are talking with Dr Ian lust bed Or, Clinical Professor of Medicine and why you lend go Medical Center on the phone up from Michigan. But I do wonder, like, does it ultimately if we don't have enough vaccinated, does it come back to us? I know Dr leus Padre saying we should be okay, but I do wonder. I do wonder too, especially with all the hesitancy that we're seeing. Right the people who wanted to get vaccinated have already gotten vaccinated.

And I'm having a lot of conversations with people are like, I'm not going to do I'm not, You're not I am. I am like a uh in different walks in my life, and and I'm respecting it because everybody has to make the decision they feel comfortable with. But um, it makes sense when he gives me under age of thirty five declining vaccine, I get it. I get that number right. It makes sense. Well, let's get right back to it with Dr Ian lust Betaor, clinical professor of medicine and

why you land going to medical center? Joining us now on the phone from Michigan. Dr LUs Bader, I want to just talk about reaction to the vaccine, because it's a question that Carol and I have been talking about a lot, and it's a question we've been asking, and I know a lot of people have been asking each other, Hey, what was your reaction to the vaccine? Why are some people having such significant reactions to their second shot or even their first shot and others aren't. And I'll share

the example of my wife. She got them more dinner shot. After the second shot, she was really sick for you know, about twelve hours and like nausea, vomiting, And I got the visor shot and after my second shot, I was I was a key, but it really went away after about thirty six hours. So Charlie Pellent as usual, right right on the money, and you as well, Kim uh So. That scenes and people's responses um not only do the vaccines but to the COVID infection itself are very complex

and I don't have a simple answer for you. There's some data UM that people who have had the virus and then get vaccinated, you know, there's a fair number of people who have a symptomatic COVID may have a more dramatic response UM and the composition of these vaccines

as somewhat complex. You do have this RNA that's at least for the MODERNA and the pleasure vaccines surrounded by what's called the liposome or or a lipid coat, and people any vaccine, mumps, MUSS, rebel at, tetanus, singles, vaccine, all of these vaccines that we give people typically do cause achiness at the site and fever. I mean, you're you're recognizing a foreign object, of foreign response to an invader, and of course the body has a variable response to it.

What I would say, though, is that most of these are really relatively minor limited usually to a day or two or less, and that even people who are on some you know suppression, you know, rumantroid arthritis, crones disease, other medications of course, talked to your doctor, seemed to do well with it. So my answer would really be individual variation the component of the vaccine. And just like a variable response to COVID to do very well, one percent do not. And in some ways it's hard to

predict exactly why. Part of it is genetics, but part of it is expected. Any vaccine, any foreign substance, you usually get some immune response, and that's good. You want an immune response. But does it mean anything if you don't have some kind of response to a vaccine, if you don't kind of feel anything, does that mean something different in terms of your ability to fight off COVID or something some other kind of virus. No, not necessarily

send people breathe right through it. I send patients of afterbout doing testing after. We don't really recommend that. We don't really do that. Most of the gum covid exposure shows nuclear capsid antibodies, which means the infection you can and some people, if they're really concerned, check antibodies for spike protein. All the patients I've seen has had the vaccine do show spike protein. We don't do it routinely.

So again, I think the data is very good. As we said, out have two hundred million shots, only about five cases of people after either both shots or the single shot J and J that is, but the two RNA shots have come down with covid, so pretty effective.

Is there any data up to now that shows a different reaction or different reactions in general following five or versus moderna because there is that anecdotal sort of thing that people say, right, Oh, I hear you know this shot is worse than the other shot, but is there any data to back that up, not that I'm aware of. You know, they're they're very similar technology, the messenger urn

technology with encased in in the liposome. And really, what I would say is, because it's so unpredictable, we should not really be asking for one or the other. They're all really quite effective. As you have pointed out correctly, don't don't get de lax. In other words, we really need two shots, either three or four weeks support for maximal immunity. And that's even a week or two after the second shot. You know, J and J somewhat different.

You still have to wait for that. Um, But no, having your fever chills, uh does not necessarily make a difference. There are some people who just don't FORMANTABOUDI should we see this with hepatitis be actually moms, minsils rebella. You can get people several shots and some people just don't forman about It's not quite clear why that is all right, good to know, UM, congratulations on the graduation. Thinking it might be your son, but I hope you well. Congratulations engineering,

thanks so much, really impressive. Yeah, you have a great weekend. Stay safe, of course. Dr Ian ls Beta, clinical professor of Medicine at n y U Land. Going on the phone in Michigan today always kind of provides clarification. Also, good to know he's traveling. He is. Yeah, yeah, he's vaccinated. We're hearing that from we are. This is Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes Tim Stinovic from Bloomberg Radio. Another one of our most read stories

on the Bloomberg. It's about how President Binds proposed tax hikes are creating a wealth advisor frenzy is getting a little money out there, Tim. It is, especially if you have a ton of money. Joel Weber is editor at Bloomberg Business Week, and he joins us on the remote

from Brooklyn. Laura Davison is a Congressional tax reporter for Bloomberg News on the phone from Washington, d C. Joel, nothing has been you know, put into policy yet, Nothing has has been made law yet, but that hasn't stopped people from freaking out and from advisors from playing therapist.

Oh man, the freak out has has really begun. Um And yeah, I think everyone is just itching to understand like, what could happen, what might happen, what the odds are, what they should be doing now, And if you have enough money to have a financial advisor, um, you are calling them, maybe maybe multiple times. And so Laura had the great idea to talk to a couple of financial advisors and get their advice for clients right now, and

Laura tell us what you learned. So basically what advisors are saying is, you know, hurry up, let's make a plan, and then we've got to wait and see what Congress actually does. This plan that Biden put up the speak is going to go over a bunch of revisions, a bunch of negotiations, and probably is not going to look exactly like what the President proposed. So they're looking to pass some sort of plan, you know, September October, but

that could slip. So really it is only going to be a couple of months at the end of the

year before these tax increases likely take effects. So wealth advisors are saying, look, if you are going to have to uh sell any assets, take any capital gains, and pay taxes on those games, let's do that now versus waiting for the next couple of years because that capital gains rate, you know, it will likely increase in its now Biden has proposed almost so they're saying, hey, you know, if you've got some shares that you're gonna sell, let's sell them now, pay the pay the tax at the

lower rate, or even saying, if you have some some assets that have really appreciated something you think, like Tesla stock, the bitcoin, go ahead, sell those, buy it back, and then you've locked in those games at the lower rate, because who knows what the future beholds. But it does still seem like, Laura, there is even uncertainty in doing that because you and are calling Ben's spend Steverman in the piece raised the possibility if there could be even

retroactive changes. Correct, So this is the risk here. You know, Congress could say this is totally within their purview. You know, hey, the tax increases already took effect January one, which would mean any sort of planning would would essentially be moot at this point, and you could actually end up hurting yourself here. Both Biden advisors as well as congressional Democratic advisors have said that they don't like doing this, but this isn't their plan. But you know, there's always that

risk out there until until the bill is signed. The thing I think is interesting is what about the I R S. Uh putting more scrutiny on the wealthy when it comes to their taxes kind of taken maybe a deeper luck. President Biden has proposed eight billion for the I R S to strength and enforcement in the coming decade.

How word are they about that, Laura? This could be a huge sea change thee the wealthy, and really taxpayers at every level have seen audits drop precipitously really in the past decade as the I R S has had its budget cut. Um they're basically proposing to double or even triple the i r S enforcement budget, bringing new auditors,

bringing new data tools to find fraud. And also one thing is interesting is having for for bank accounts, having some of the inflows and outflows from bank accounts reported to the I r S, so they have a little bit more visibility on how much money investors should be reporting. This would really be a sea change. And uh, you know, if you have a wealth advisor's probably also a good idea to make sure you have a good account into

at tax lawyer on hand as well. Right, make sure he's doing the right And all those people right now are just like the financial advisors like, great, I haven't heard from you forever. Thanks for picking up the phone and calling me. We'll come up with a plan now, jerk, But so so Laura, I want to have a better understanding of this. So that's a hurry hurry weight strategy

that they're basically um advising. And and are there rainy day implicated sations to this, Like are they saying like don't invest right now, like hold off until we know what's going on, like take us through the various ways that they're actually trying to coach people. So basically they're telling people, you know, continue as you were if you had a you know, a plan, uh, you know, continue with that plan. But if you're looking to sell something,

you know, let's do it sooner rather than later. Get the deal structured so that it can happen by New Year's Eve if you want to go ahead and execute on that. Um, you know, there's there's really so much uncertainty right now. Basically everyone every adviser saying, you know, don't do anything yet, let's just you know, make create some options for ourselves. Look, at different different planning tools and then we can make a decision once we kind of have a sense of what Congress is going to

do here. Okay, So I want to also understand, like another element, and this part isn't in your current reporting, but I'd like to understand, like, you know, a state tax was was potentially part of this first phase of talking. They seems like they've tabled that, Like what what are these financial advisors? What do they have to say about this the likelihood of a potential of state tax down

the down the road. Yeah, so the state tax right now doesn't kick in until you know you have eleven point seven million dollars at death or twice that if you're if you're married. Um, Biden left that out of the plan. Um likely because there's some Democrats in the Senate who would not support lowering that threshold. But he did campaign on bringing that threshold down to three and a half a million dollars, so a lot more people

would be affected by that. That is one of those elements where you could see, you know, if if moderates and and progressives are negotiating over different elements, that's one area right that progressive and say, hey, we really want to get this in here. It raises a bunch of money. It would help Biden pay for a lot of his spending proposals. So that's one area that's still in play. The Tax Law Jobs Act, of seen the Trump tax cuts,

those are still pretty fresh. So what did advisors say to to you about the idea of people just kind of doing nothing and perhaps even if there are changes, doing nothing and maybe even waiting for a new administration

to to revert to rules back to today. So says it will be other thing that that advisors are really looking at is, you know, if Republicans sweep in, you know, do we basically just have a sea change back in the other direction, which as we've seen, you know, with the use of reconciliation, this partisan tool to get built through Congress. You know, if we keep having the pendulum swing one way or another, uh, we could see policy changes on tax and anything, you know, every four years

changing significantly. Um. And this is something that you know, really has frustrated tax lawyers for enable. They're just finally getting all the details from the Tax Cuts and Jobs Act into place, and now they basically have to totally undo them and all the advice they had given their clients totally goes out the window. It's it's very, very

confusing and hectic. Well, the freak at the Frenzy says to me, Laura that the wealthy do expect some change, even if the political process may be tough, they ultimately do expect they're going to be paying more taxes. Is that a fair assessment? Taxes? Uh, more likely than not are going to go up, Which which taxes? How much? Who's going to be affected? That's what's going to be negotiated over the next several months. And you know who

makes money? Long wait, the financial advisors, right, and the lawyers too. Listen. It's a great story. And I feel like, you know, Jelly put taxes in a story here on

Bloomberg and like everybody wants to read it. Yeah. The I think the amount of information that we're going to be consuming on this, like we're we were all armchair quarterbacks for the pandemic, you know, on everything about the virus, about vaccines, and now we're entering this new phase where you know, now we have a new administration, new stuff, and I think, you know, step up in basis is going to be like this thing that everyone is gonna want to know about. So we're just gonna be watching

this so closely. It is such a core competency story at Bloomberg and was owned this for the months to come such and I'm sure we'll be reading more more from Laurada like every day. Just keep it coming, Laura explaining it all to us. Laura Davison, thank you so much, Congressional tax reporter at Bloomberg News. She's with us on the phone in DC. Chill Weber, Editor Bloomberg Business Week, have a great week, and on the remote act Sass

from Brooklyn. This is Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes. Tim Stinovic from Bloomberg Radio the Bloomberg Big Take Today it's a Bloomberg exclusive that you kind of need to be focusing on, and it's a story that only we have and today it's about the seemingly NonStop behind the scenes drama between Apollo Global Management's billionaire co founders and what it means for investors. Heather pearl Burg is a private equity reporter at Bloomberg News.

Joins us on the phone from Washington, d C. Heather, this is quite a read. I can see why it is the big take today. What has been happening behind the scenes as Leon Black has been has exited Apollo well Land. Black is sort of a known classicist, I mean named the firm Apollo, and it's really starting to look a lot like a classic Breek tragedy. I mean, you have the drama, the revenge, the power grab, and

that's the center of it. Is this you know, four hundred and fifty five billion dollar investing powerhouse, UM that's really had a tumultuous year or so, and Leon Black was just um really sort of scathe, scrutinized for his ties to Jeffrey Epstein for most of last year moving into this year, eventually sort of forced to step aside, and you had his two potential successors, Mark Rowan and

Josh Harris. And Mark Rowan took the reins. Harris had this sort of failed bid to become CEO, and since then he's really been sidelined and at a bare knuckle firm like Apollo. That doesn't look good, is it? It sounds a little surprising too, is it. Well? You had these three men who were sort of leading different parts of the business, Josh Harris was always in charge of

private equity. Now Apollo made this grab for at seeing the huge insurance company that has made it sort of the envy of Wall Street for getting such huge fees, and private equity is certainly a smaller part of their business. Um and and Harris was just being kind of slowly relinquished of duty. Is shopping for a place in Florida for aman who was sort of a known workaholic and really um micromanage into the nitty gritty of deals in the New York office. He wouldn't be moving to Florida

if he really had his pulse on the business. What do employees who work under Harris or have worked under Harris think of that, because there are some pretty jarring anecdotes in here about what they think. Well, he wasn't known to be an easy man to work for, and that's been sort of widely reported in the past. But yeah, we did. We did. Hear some pales of his underlings humming ding dong the witch is dead from the Wizard

of Oz. So I guess they were relieved. That's a little harsh to say, right right, yeah, exactly exactly when you think about it. As you you write and report, you know, I mean this is an individual, Harris, that is, who has spent you report years positioning himself and becoming a more public face of the company at conferences and in the media, you know, kind of setting the stage. And it's interesting to see how things play out. UM. And and Leon Black, we know has taken a big

step back. But what is his involvement? What are you hearing as things change and evolve? Well, he really is not supposed to be involved in any investing activity anymore. You know, he cited health issues. He did there was a story that he had kind of called into one meeting UM that was quickly reported by the media. And I think, Um, there's just so much scrutiny over his involvements that he'll probably stay out of it for a

little while. I mean, there's some speculation that he might come back eventually, but nobody really knows in what form or what that would look like. I always think about all of the stories that you and your team and others have report up Bloomberg. You know, there's key senior people. They are often crucial when it comes to raising new funds, creating new funds. The relationships that they've had for years

that allow them to raise new money to invest. So how does Harris having a much smaller role and maybe potentially new role at some point, how does that impact the firm which is a publicly traded firm at some

point um you will see how that shakes out. I mean, he definitely has a relationships with big limited partners, just like all of the founders will have their own relationships with people, and and Josh Harris is still a key man on the largest ever private equity funds that Apollo had raised, which you know they haven't finished investing yet. So if you were to leave, which you know people are speculating he will in the next year, So that

would trigger a big problem for Apollo. I mean, investors would essentially have to sign off on the fund continuing to do deals, so investing would pause or maybe even stop. And I Apolo certainly doesn't want that to happen, So

does have a little bit of leverage at the moment too. Yeah, Stacks after that this year, Hey, Heather, what did you learn specifically about what Harris is doing in Florida and has been doing during the pandemic and indications just in about thirty seconds or so that he's thinking about making more permanent routes there. Um, he's a spot of a lot of different nice restaurants riding his bike around town and the Phone Beach area. Um, you know, I think there's a lot of people who have sort of fled

New York City in the pandemic. And um, you know, we had definitely heard that he's looking to buy a place down there. Apollo's opening offices down there, So it isn't the craziest thing along with other firms to kind of help retain talent um. But for someone like Josh, you know, this would be a sign that if he wanted to sell down Apollo shares, taxes wouldn't be as much as of an issue as they were in New York.

We'll see if we see him a lot more at sports events too, as that opens up, because of course he's got Harris Blitzer Sports and Entertainment that he's set up with Blackstones David Blitzer. Hey, great reporting as always, and that of course is the big take story. You can find out more at Bloomberg and Bloomberg dot com. I'm roc journal Yeah, but you let me drive. Oh no, no, no, no, who's honey, Please, I'll do the right rivel. I want to drive, Just drive, baby, it's the questions drying. This

is the drive to the Globe un Radio. Just about ten minutes left in today's trading session. Charlie Pellett putting it so perfectly a late day fade here on this Friday. We are definitely off our best levels of the session and definitely off record highs for the broader market. Let's get to it with James Chuck Mark. He is back with us, partner in portfolio analyst. He focuses on tech stocks at the asset management from Clockwise Capital. He's back with us on the phone in Miami. James, good to

have you back with us. What a week tech stocks, This is your world. I'm guessing you might not have gotten too much sleep this week, but sum it up for us if you would. If there is kind of a big overarching theme from some of the names that

reported this week, yeah, thanks for having me. So. We saw all the big companies reporting this week, Amazon, Apple, Facebook, Microsoft, and I think the big overarching takeaway from those is that these companies are proving to be increasingly essential to the world, and the results certainly approved that that not only are they essential way businesses operate and consumers, but they're essentially the new utilities, and that essential infrastructure that

they've built is something that's going to be virtually impossible to derail for the foreseeable future. And the new companies that are coming into the market UM are are predicated on leveraging the infrastructure of those companies have built. So no matter what, you know, they're here to stay and very little they can stop their momentum. That said, James, it does seem like it was kind of the tale of two different types of companies, the big tech companies

versus the small tech companies. I mean, you saw what happened with Facebook's report and Alphabets report, Microsoft's report, and then of course Amazon's report, and at the same time what happened to Spotify, to Pinterest into Twitter. So so where's the divergence there? What's going on? Yeah, what we're seeing right now, I mean the market has gone absolutely straight up for over the last year. Every single thing that was thrown at investors was dismissed, you know, depressed

earnings for UM, regulatory risks, the election uncertainty. You know, we had a couple of blips here and there, but it's essentially gone straight up. And then now you tack on inflation concerns as we look into the coming weeks and months. Obviously, some of those stocks that you just named,

you know, they're higher multiple stocks and more sensitive. But ultimately, when you do look at the underlying performance of those companies, particularly spot you know, Spotify, that's one that we actually added to on the pull back because of their audio platforms that they're building and and positioning we think, you know, relative to Apple Music. Um, but the results clearly are strong. But the multiples attributed to these stocks maybe pricing in

and increased discount factor. As you know, we have some outstanding risks as we look full of So I'm gonna go through a quick laundry list. Apple. Did you add to the position, did you reduce? What's your take there? Well, I'll tell you the what we did. What when we turned into the the new year. One of the things that we did was we knew that the market was going into a rotation trade, you know, going into the travel space and airlines and things of that nature. But

those businesses we didn't think are sustainable. So what we did was we sized up our highest conviction names like Apple, like a Whirlpool, like an Amazon, like a Facebook. You know, gross them up to tensive position, so huge sizable weights within the portfolio given our conviction of those names. So we haven't sold any, but they remained super concentrated as part of the book. So that's so, that's true. So that's Apple, Amazon, who else? Basebook, Whirlpool top four. Yeah,

it's an over ten percent weights teature. Okay, how does the rest of the year look like? I mean, here we are at a point where equity markets are just blowing past expectations that analysts sat at the beginning of the year are already. Um these are high expectations that these that these companies have to deliver on. Are they gonna be able to do it? I think these short answers to that is yes, because technology can and will always move forward. So no matter what type of market

clips that we see the move. The world is moving towards the cloud, and the world is moving towards flexibility and and enhance productivity, and any businesses that allow you to augment and optimize um that productivity and flexibility by via companies that either build the cloud or leverage the cloud will continue to benefit. But uh, you know, from a macro sense, you know we do have calls for concern.

You know when you whenever you open up the economy, when you shut it down and open it up with a flip of a switch, you know there is going to be a huge bottleneck on the supply side, so inflation.

Even though the companies that we are investing are deflation deflationary, which gives us confidence in them, but we will have likely have you know, inflationary risks in your term and some of these stocks you know that do have high growth, super high growth and high multiples associated with them could certainly be under pressure. You know. The analogy we make

is kind of like a traffic accident. Um. You know, even though you clear the accident, you know it will still take a lot of time for the the traffic to clear up. Um. And that's kind of how we're thinking about the supply constraints of the world and what the implications on pricing and and inflation and associated interest rate. Hey James, how do you make sense of kind of old economy new economy forward versus tesla or you know, WORL Pole that's in old economy, but they definitely benefited

during the pandemic. We've talked with the CEO on air and he says folks have been at home, cooking and spending more time at home. He doesn't anticipate that's going to change anytime soon, that consumer habits don't change that quickly. But it's an old economy company versus you know, an Amazon where we can shop online and do things differently. How do you make sense? How do you make investment decisions because you've got a little bit of both in

your portfolios. Yeah, it's it's uh, you know, Whirlpool Like it's interesting. It's not really a tech company per se in the traditional sense, but it's a savior in my

house if I've got a dishwasher though and washing machine. Well, the changes they are making on the production side, you know, they're getting much more efficient in their manufacturing capabilities and and they have been the low cost uh manufacturer of appliances and and the more efficiencies are able to drive on that, they only be able to improve their efforts turnover and in turn, um, the appreciation of machines and you've been seeing that. But as far as a new

economy versus old really boiled. The way we look at it as boils down to their d n A. You know, are they willing to make the sacrifices that may cause near term pain in terms of margin and growth, you know, to to be able to adapt or um are they going to be stuck in their own ways and and and trying to peek out as much cash flow as possible.

You know, a company like Intel, for example, they're actually trying to rip the band aid off and become something new UM a manufacturing company that could ultimately hurt their profit performance over the near term. So it really boils down to are if it is a legacy company, are they willing to adapt. If the answer is no, then they're out. If the answer is yes, then we'll take

a look. And as far as the new company is though, it's are they aligned to take advantage of the cloud and be able to you know, grow their customer base independent of geodication and and and continue to um pass on ultimately consumer surplus and in the in the and with respect to time savings, because ultimately, anything that saves

you time. So if you look at any company that is succeeding right now, they save businesses or Constoomer's time in some way, shape or form Alright, we're gonna leave it on that note, James, nice to check in with You have a wonderful weekend. James Chuck, Marky's partner and technology analyst at Clockwise Capital, 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