Why the Coronavirus is Different

on iTunes, SoundCloud, or Bloomberg dot Com. You can also listen to our radio show weekdays at two pm Eastern only on Bloomberg Radio. Lots going on, and there's more moves by countries and cities around the globe to mitigate the effects of the coronavirus. Here in the US, it's really kind of a patchwork of moves by governors and mayors across the country. Safe to say, though, Jason, it's

been a pretty severe response. Here to talk a little bit about that response and whether it makes sense is Dr Dave Westerner, He's professor of biology at Davidson College, who joins us on the phone from Davidson, North Carolina. Dr Westerner, really appreciate your time on this Monday. It has been a severe response. I've had a lot of people say, wait a minute, are we overdoing it? Are we? Yeah? Well thanks for having me on today. Yeah, that's that's

a great question. Has been a severe response? Um? You know, I think there's there's so many unknowns with this virus that a severe response is warranted. Um. If you look what happened in China, I mean, they had much more severe response, and within a month or so of of that, it seems like they were able to get under control the number of new the new infections. So I think that's the goal here. If we implement these strategies, now, are we going to mitigate the effects over the next

month or so? Excuse me? And uh so, dr you know, tell us about what makes this one different because it feels severe. Again, we don't have broad testing yet here in the United States, and so maybe the numbers are a skewed a little bit, but you know, it's terrifying, candidly to see the numbers coming out of Italy, uh and and other countries. Help us understand you know, what's different about this. Yeah, I think it's a it's a

great question. I think it's a question A lot of people have, you know, the just the back up a little bit. I guess coronaviruses are not entirely new. We've known about coronavirus is for half a century or more. Um. Indeed, probably a quarter to a third of what we'd call

the common cold is typically caused by coronaviruses. It really was two thousand two, I guess, with the Stars outbreak, which was a coronavirus, and then two thousand thirteen with the Mirrors outbreak, which again with a coronavirus, that we started seeing this family of viruses as potentially major um impactors of human health. I think what's so Stars and Mirs had fairly high mortality rates. With Mirrors about a third of the people who were infected actually died, which

is extraordinarily high. Um. Both those viruses were not easily transmitted from person to person, though, So this virus we're seeing, you know, a related virus in the coronavirus family, that is much easily more easily transmitted from person to person, and I think that is really the cause for concerns. Even though the mortality rate seems to be significantly lower than Stars, we're seeing many more people become infected, much more quickly. But that's what I think, that's a big worry.

That's what. Okay, and help help us with this because this is the conversation I think, especially as we see our cities and our states being um, you know, self

quarantining and shut down completely. I guess the question is, and people have said this that if if what we keep hearing from officials who are telling us that most people will be fine, some people won't even know they have the virus, and that really those most at risk, whether it's the elderly, are those who have some kind of illness, you know that those are the most vulnerable. I mean, if if are we is it correct to

say that most people will be fine? And then because of that, you know, is the content Is the spread of the virus still that worrisome? I think yes, most people will will be fine. Um, but that doesn't mean the spread of the virus should not be worriesothing to all of us. Uh, your average person, relatively young, relatively healthy, Yes, all the information suggests if that person gets infected, they'll probably be fine. They'll have a minor cold, they may

be completely asymptomatic, they may have flu like symptoms. But the real concern is those people can transmit the virus to others, and if that virus then gets transmitted to a more vulnerable population, the elderly people underlying medical conditions, it's gonna have very severe consequences. And if those numbers go up, the health care system is not prepared to deal with that many people coming in with severe consequences.

And so Dr Westerner, you know, you've heard that a lot of the same things we have from Dr Fauci and others about the length of this sort of new life that that we're living in. What what do you make of that? I mean, is this a two month thing? Is this a three six? Like? What are we looking at here? Yeah? I think that's that's a great question. And we don't know. I mean, this is something we

haven't seen before. We don't really know. Um, if you look at influenza, there's been a lot of comparisons between this and influenza. We pretty much know every year influenza cases are going to decrease in March, decrease again in April, will be almost non existent in May. You know, if that turns out to be the case for coronavirus, great, it's going to be gone relatively soon, but we don't

know if that's gonna be the well. And I'm going to say that just listening to other medical coverage as well that we've been doing on our network, is that summer saying we don't know because it's now showing up the virus and some warmer locations, so we don't know that those warmer temperatures are going to shut down the virus. I guess I guess it goes back to there's just so much we don't know about this particular strain of the coronavirus that really um explains some of the hysteria

and understandable shutdowns. Dr Dave Westerner, Professor of Biology, Davidson College, on the phone from Davidson, North Carolina. This is Bloomberg Business Week with Carol Masser and Jason Kelly on Bloomberg Radio. Last night, Joe Biden and Bernie Sanders got together in a studio, not in front of an audience. Kevin Sirelli,

we know, was watching it. Chief Washington correspondent for Bloomberg Radio and television host of Bloomberg Sound On that's coming up later on in d C. He joins us from Washington, alright, keV Amid all of this, there is still a nominating contest going on. What do you see last night? What do you see last night? Well, first of all, I mean three things. First and foremost, I mean, you've got primaries that are being delayed as a result of the pandemic.

And then secondly, it was it was really a substantive debate last night, both former Vice President Joe Biden as well as Senator Bernie Sanders only really attacking each other's records and not making it personal. They also that this is the third point that I would make. They also rarely mentioned the president's name if there was something in some analysis that was done at the inclusion of the debate that found they really focused on how each of

them would have responded and would respond to the pandemic. UH. Senator Sanders used it to double down on his assertions for Medicare for all. The former Vice president used it as an opportunity to talk more about his leadership style

and how he would have conducted it. And you know, Biden really using UH terms so far as to say that there needs to be a mobilized effort equivalent to to World War two, UM and so from that standpoint, Uh, it just is a broader illustration of how much the pandemic has really caused, injected so much uncertainty obviously into the lives of every American and every citizen in the world,

but also uh into the longer term election cycle. Well, yeah, you do wonder you know what else might potentially have to change as a result of this, Kevin, I mean, we've got another round at primaries tomorrow. I mean, Americans, can they get you are those folks who need to be voting? Can they do it? Do it? You know, that's that's a question that those individuals are going to have to rely on their local governments in order to

get that guidance UM. And and of course people listening, you can go to your local government websites to make sure that you get that guidance UM in terms of the voting UM. But beyond that, it's also worth noting that a lot of these folks had pre uh pre election voting and and and began voting early ballot voting, uh several weeks ago, so that that's a part of this as well. Um. There's been also some in Washington, d C. You have just raised, uh, the issue as

campaigning for the year is changed dramatically. You know, no more rallies, no more town halls. Uh, there was no live studio audience last night. Uh. And and so that's just something else that I think top campaign officials on both campaigns are are are working through as well. And Kevin, do you think that that could lead to a scenario where maybe, uh, Sanders, who is not the front runner at this point, maybe backs off just a little bit.

I mean, certainly, as you say, the tone was yeah, I mean, they certainly were disagreeing on certain things, but it felt like a more cordial tone than we've seen in many of the previous debates. Absolutely, And and you know, both candidates reaffirmed that whomever the Democratic nominee is, that they would do anything everything in their power to campaign

for the other person. Biden made that very clear. Standards made that very clear, and just you know, speaking, you know, it almost is surreal to see all three of the campaigns, the president's reelection campaign, Biden campaign, Sanders campaign, to see their them put out not them per se, but they're they're collective campaigns to be putting out these it's on it's like they're living in a vacuum, these attack emails and and and fundraising at this time. I mean, it's

just it's nonsensical. Um. And so I think you're gonna notice some significant changes in the coming weeks to just how even on that level they communicate. I mean, it's it's it's quite striking, you know, when when you're talking about just the moment that we're in and you've got to you know, then you've got these emails for fun. Well,

and one last question, just got about thirty seconds. You do wonder we talked about longer lasting impacts as a result of what we're going through because of the virus taking an audience away, with candidates not playing to the audience or cheers or booze. It really made it a very different type of debate. As you said, they stuck to the issues. Just got about thirty seconds here. I'll keep this sight. Absolutely they they stuck to the issues.

And I gotta end on a note of optimism. I just was flipping through my social media feeds and and I saw that navy ship off the coast of Italy playing the Italian national anthem, and I just thought, you know, let's put that moment out there on your beautiful show, Carol, and Jason's well, thank you, and we do appreciate, yeah, you know, and all that we're all going through to kind of end on that note is um is really

really wonderful. Kevin, thank you so much. I know you're dealing with a lot as well as you continue to cover what's going on in Washington and certainly on the campaign trail, which is really not happening right now because too is shut down. Is Kevin Cirelli, Chief Washington correspondent at Bloomberg Radio and TV host a Bloomberg Sound One in Washington, d C. Carol Masser in our interactive Broker studio here in New York. Uh, my co host Jason Kelly out there at home. Uh. And this is how

we're doing it, folks. Interest. Interesting story on the Bloomberg Today about how Walt's one of my favorite stories. I have to say, yeah, getting blind side. Yeah, well let's talk about it. Yeah, it's uh, it's Wall Street getting blindsided, right, I mean in a lot of ways and some great color. I have to say Max Able's and he knows this is one of my favorite writers at Bloomberg because he just gets things other people don't he gets insights into

the titans of Wall Street that you do. He joins us on the phone from New York City as just Joel Webber, the editor of course of Bloomberg Business Week, Max, want to start with you first. How are you doing? How are you feeling? Thank you so much for asking. I'm great, especially when I hear your your live on the air compliment, which means so much for me. But I do want to give a shout out to my colleagues Street or Naturajan and Kathy Burton, who helped me

build this story about you know, Wall Street. I think you know whether or not you really adorn and admire, you know, the financial services industry, or if you despise it, or if you're afraid of it. You know, the thing that I think we'd all agree on is that Wall Street seems to have this ability to look around corners and to make money from from the ability to predict us next. And what our reporting showed is that just didn't not happen here. You know that they existential crisis

happened without Wall Street seeing it coming. And that's what our stories about. So, Joel, what do you make of this? You have you know, both as the editor of Business Week and formally the editor of Boomberg Markets, you have a keen understanding of this type of person and and sort of the the behemoth that is Wall Street in many ways. Did this surprise you? What? What did you

see in this story? Well, I think the thing that we kind of hit on with Max and Um we reached out to the sort of the middle of last week and said, hey, this thing's happening, and you know, it's starting to turn into a blood bath and everything's turning red, like what is the mood right now? And he just was able to talk to some people who we don't normally get to talk to. And what really struck us was just literally how blindsided, well the top, the top echelons of Wall Street were by this. And

it's funny. And even since he wrote the story and we published it last last Friday, it's been sort of interesting because I've been seeing things like um comments that Davos pop up, and even then, you know, like the coronavirus situation in China was something that was on people's radar a little bit, But those comments feel so dated when you look back at them already, because I think everyone just underestimated, obviously how big of a global phenomenon

this was going to be. And you know, looking at all of those comments and these comments from from the highest levels of Wall Street, it just it goes to show you here, you know, we had this epic bowl market forever and one of the favorite things everybody talked about was like, what could bring this thing down? And yet the thing that has brought it down, like literally wasn't a thing that anybody was pointing to. Well, And I think what's fascinating is these are the individuals we

kind of turned to. Certainly the President did, bringing all of the big bank execs to Washington to say, Okay, where are we? What's going on? Is this a financial crisis? And you know, these are the folks that we often look to to say, Okay, how bad is it? Where are we? And the folks we look to that hopefully get an early indication that something's worse than what everybody thinks, And you know, Max, it's not what we got. These

guys were as equally surprised. I that is a great observation, and I think maybe the difference might be is that this is not a financial phenomenon that then in effected the real world, which we we um old enough to remember the two thousand financial crisis, when financial mechanisms UM ended up nearly taking down the rest of the world

with it. In this case, it's it's a public health crisis then infected the markets, and I think that that might be what's confusing and upsetting and frustrating to financiers. And then, of course, I mean it's worth is pointing out that while Wallstreet didn't see this coming, but it's also a real life calamity impacting millions, if not billions of people around the world. So it's why I think even even the Wall Street billionaires we talked to had a sense of this is this is UM hurting a

lot of people all around the world. Max. What was the thing that struck you the most? What was the anecdote that really jumped out at you? You have a keen nose for these Okay, well, I wish I could brag him on my own nose. But in this case, Tree starring Kathy Um is the recording that gave us this just gorgeous opening scene where you know you have truly the masters of the universe that that we care

about here at Bloomberg News. You've got John Paulsen, You've got David Einholnd, You've got Dan Lope, You've got Golden Sacks. Goldman gathers those three hedge fund magnates together with others in a in a literal like Midtown Manhattan steakhouse the Sunday before Last. And the scene we have isn't you know, a scene of swagger or a scene of understanding the world. We have a scene of people trying to figure out what's going on. And of course that is when the

fight between the Russians and the Saudis break out. The oil market balls into chaos. You know, we have the we have a scene of these these men all on their phones, you know, scaring into their phones as um, I think it's a stock future is that halted? And then and then a few you know, not long after that, we have Mark Lasar, the billionaire, the founder of Avenue, who also co owns Milwaukee Bucksky his credit. He said on the records to me, I remember telling Joel about it.

He was basically like, look, I didn't think this was going to happen, you know, I thought everyone was going to calm down and until recently. I just totally misunderstood this thing. And it's always kind of nice to hear people whoever they are, are just kind of like be honest about it. You know, it's in in a weird way. It's kind of rare, but I hope it's It's what makes this the Business Weeks fun. I have to say the Columbia University professor quote that you have in this story.

That are the three of you have in this story? Um, I guess runs a program and financial engineering said Wall Street executives may not have seen this coming because they don't understand the pressures on regular people. And even a Goldman Sachs former managing director, you guys quote, I do think financial people live in a different world, So you do wonder about what they miss because they're just it's just not what they see on a normal basis. It's

a must read. Really appreciate it. Max Abelson, Finance reporter Bloomberg News on the phone from New York City, stays safe along with Joe Weber as well, editor of Bloomberg Business Week, joining us on the phone in New York as well. Thanks for listening to Bloomberg Business Week. You can subscribe to the podcast on iTunes, SoundCloud, or Bloomberg dot com. You can also listen to our radio show every weekday at two pm Eastern, only on Bloomberg Radio