The Impact Of A European Coronavirus Lockdown

woman who just graduated from nursing school. She's gonna start her first full time job the Children's Hospital Philadelphia, which is a great, great hospital, and it just she was so enthusiastic and so passionate and committed. It just made me feel good because you think about the folks of it on our front lines of during this pandemic um and just the stress they've been put under, and you

just wonder, you know, how they do it. UM. That's where we like to talk to folks that are really uh touched, you know, really tapped into that part of the healthcare system. Jennet Elkin, president and Chief executive Officer of Icon Medical Network, joins us Icon Medical found in places physicians and actitioners on assignment in hospitals and health care facilities in the US, so she really knows what's going on the front lines. Janet, thanks so much for

joining us here. Again, it seems like in parts of this country and other parts around the world, we're getting another wave of COVID um cases. Here. What's it like on the front lines. It's still extraordinarily busy, as you can imagine. In addition to that, though, given that we're seeing requirements for the vaccine really go up, as you can imagine if they would do have to stop this at some point. But what's happening now is it's getting

harder to place nurses who won't get the vaccine. So it's kind of closing an interesting time right now in terms of staffing these facilities. Well, I mean, do you want to place a nurse who won't get the vaccine? Do I really want a medical professional who, uh is that obtuse working on me? I don't think so. Oh, given that my dad died early from COVID even if

you hadn't, yeah, you really don't. So what's happening now is that they're gravitating nurses towards those nurses towards facility and also there are a few physicians out there who won't get vaccinated, but it's becoming more difficult for them. And in a way, although that's hard for facilities, it also means that hopefully we will get more people vaccinated

and be able to affect better patient care. Janet, you know, you know our views here in New York City obviously skewed for much parts of for many parts of the country talked to us about healthcare per you know, system and staffing in more rural parts of America. I know that was a challenge even before the pandemic. What's it

like now it continues to be. I mean, you've got, if you think about it, not only COVID and what that's caused in terms of medium more practitioners, the fact that they didn't have enough to begin with in the rural areas, and then on top of that as fallout from OVID, and I think how it made people. We

think things the great resignation. Yes, we see it in terms of nurses, physicians resigning, but some things you may not think about, or even the recruiters who work for health care facilities to place more permanent employees, they're also moving on. So Jennet. Where are we in terms of the pipeline? Again, last night I had dinner with a young woman who just graduated nursing school. Where are we in terms of putting out doctors, nurses, nurse practitioners, things

like that? Is how's the pipeline? I mean, the pipeline is obviously not great. It takes quite a while to be able to get your degree. Of course, physicians the most right um CRNAs, which are advanced practice nurses who go on traditional training. But even for our ends, I mean it's they can't get them out fast enough. Now the person who had dinner with is going to chop which children's hospital and Filly is one of the most desirable ones. But think about the hospitals that don't have

that kind of reputation. It's getting extraordinarily difficult to be

able to place in a practitioners. I wonder what your take is on the Build Back Better bill, And not because I want you to take a political stance, In fact I don't, but it does seem that it's extraordinarily difficult in America, especially compared to other countries, for um, for mothers to go to work, for mothers to get an education and to go to work compared to you know, Germany, where I spend most of my time because childcare is expensive and it's an arduous process for a lot of

people to to feed their kids. I mean, is this going to help? Hopefully it will, And you know, you bring up an excellent point. It is difficult. You can't do it all at the same time. This is why we're seeing for physicians such an uptick in them wanting to do telehealth because they don't have to these travelers, they don't have to travel to another occasion. They can do it from home and that's making a big difference. But of course those things in healthcare can't be done

in terms of telehealth. But we if we don't do something, it's only going to get that much worse. All right, Joanna, thank you so much for joining us. We appreciate it. Janet Elkin, President and chief executive officer of Icon Medical Network. One of the analysts that we have on a lot Dan Ives. I think he's one of the most listened to analysts on Wall Street when it comes to the tech area, and he is, to be fair bullish. Every

company that he covers. He has an outperform on like thirty different companies of Penn State, Nitney exactly, he said, tweeted today, we believe there's five trillion dollars of e V auto market up for grabs, with Tesla likely to own two and a half trillion dollars of this pie. We estimate China is worth four hund dollars per share of the Testla story for two, raising our price target from eleven to four hundred with our bul case of

eighteen hundred. So he's a big believer here. He's been right. Um, we have another uh Tesla fan, at least in terms of the car. Uh. Matt Winkler, Bloomberg News editor in chief emeritus and also the author of a piece on Rivian. So I didn't realize you owned a Tesla car as well. Matt. We talked about this on TV a couple of days ago. Last I heard you were in a Toyota Avalon. What happened two thousand and fourteen, to be precise. We acquired a models and we're happily driving it to this day. Uh.

So you loved I know you loved the Avalon. I'll never forget when you told me about that. You had a lot of enthusiasm for it in terms of what we see here at Rivan, it is if you didn't know the Tesla story, it would be mind blowing the fact that electric car maker truckmaker can come out and get a hundred and twenty billion dollar market cap um even though they've only sold probably this point three or

four hundred vehicles on the road. They're bigger than GM by almost thirty five percent right now, How is it possible? So what gets every investor excited Matt and Paul, I think you agree is growth. That is always what brings the market to its highest levels. And Tesla, for example, uh, since it went public in two thousand and ten, has seen four hundred times the growth of the average for the automotive industry over a ten year period, which is unprecedented.

And that growth has enabled Tesla, as you now know UM, to make a profit um and to get to a point where even the doubters are now acknowledging that electric vehicles are for real, they are the future. And Tesla did that. So oh, it's set the stage for Ribbyan, which is going in a somewhat different direction because its focuses on trucks and suv but more particularly vans commercial

um traffic. Jeff Bezos, who needs no introduction, uh, and his company Amazon already ordered a hundred thousand of these Ribbyan bands, which haven't been produced yet. But that gives you some idea of the anticipation of where this market is going. And the stock market is always about the future, it's not about the past, it's not about the rear

view mirror. So this explains why Ribbyan as of this moment is number five in terms of market valuation among the top ten automakers, having sold fewer than fifty vehicles. Crazy and Matt, you're out with a column on all of this talking about the v market and evaluations, and along with your colleague Shinpay and Jennifer leew are really

some great data. As always, the number of the line that kind of stuck out to me, Matt is, you know, the market value of the top ten automakers is more than two thirds electric, a reality considered improbable, if not impossible, just a year ago. And I agree with that shocked me. I mean, does that suggest that the traditional automakers they've just missed it or can they catch up? Do you think, well, they will have to catch up because probably by the

internal combustion engine will be a museum piece. And so, uh, that's not a secret at this point. And so anyway, the uh, the rest of the industry gets to that point is going to be the story. And so they're going to do it all kinds of ways. But for sure, the ev makers can do only one thing, which is make electric vehicles. The rest of the industry has a much messier, more difficult, challenging task ahead. I've erected a

museum to the internal combustion engine at my house. Increasingly I feel guiltier and guiltier about driving these cars, I will admit, because there's such huge emitters globally right internal combustion engines really contributing to um greenhouse gas emissions build up and climate climate change. Do you think we're gonna need continue to need government incentives Matt, for electric cars and investment in infrastructure from the government in order to

make a change, to make that switch bigger. Here's the best answer to that question, Matt. California is the best performing economy in the United States, subject of another column you had recently, and it's number five in the world. If it were a country, it's number five in the world. California is the place, more so than any other state, where people's preferences and government policy converge. They converge, they're not at odds with each other. And that's why they're

more e vs in California than anywhere else. Uh in the US and where you could easily see I mean the growth of evs accelerating and the fact that Rivan is an Irvine, California based company. Tesla of course started in California and Palo Auto. Even though it's moving its headquarters to Texas, the place where Tesla makes its vehicles is still Fremont. So that's not going to change, if anything,

that the production is going to go up. So the answer your question is yes, Um, this just only accelerates, all right, Matt, thank you so much for joining us. Really appreciated. Matt Winkler, Editor in chief emeritus founder of Bloomberg News. He's something, Have you driven electrical? I'm not? All My God, are serious? I'm not. You have to try it, all right. I think that makes a convert and a lot of people when you experienced the I think it might be in the market. We'll see red

and green on the screen is a good friend. Tom Keene likes to say, let's see what the action is with the small cap stocks. We do that every day at this time with Bloomberg Market Reporter. Yes, across asset markets correspondent actually, but thanks the Russell two thousand down zero point four percent on the day. Riskoff moved across the market. The Rustle two thousands. No different you under

the hood, though you have some deal news. Simmons First National has agreed to acquire Spirit of Texas Bank shars in a cash and stock deal valued at about five eighty one million dollars. Spirit of Texas Bank shares. The takers st x B shares are up eight percent um. You also have Simmons First National Tier s f n C shares are down six percent to the downside. I'm sad to say the other stories are all downside stories.

And Nanta Pharmaceuticals down eleven percent of the tickers e n t A after discontinuing development of its oral hepatitis

B drug based on emerging safety concerns. You also have Bell Ring ticker b r b R down eight percent, maker of nutrition supplements, posting fiscal fourth quarter revenue that fell short of consensus estimates, and lastly, Record Systems UH down six percent, ticker r e k R, and AI technology company that is also the worst performer in the Russell two thousand index, missing three third quarter excuse me consensus estimates on both the top and bottom lines, and

saying revenue will fall in the coming quarters. Bloom Now, what's the exact title here? I want to get this right? Markets correspondent for Bloomberg TV and radio. Have you thought about a different title? As interesting as I think, I was already a markets reporter, reporter and a correspondent. I don't know it's a title upgrade. It's a markets reporter. First I did it on print. Now I'm doing it on TV and radio. So all right? Are we gonna

go with that? Mant? I think editor at large sounds good and pretty is a triple threat because she writes for Ben, she's on TV, and she's on radio. Actually a quadruple threat because she does quick take as well, and she probably does some social media thing that I don't even know about. I know Matt doesn't follow me on Twitter, so you wouldn't know. This is a very public call out. I fall out. I follow mostly people

who drive race cars or ride motorcycles. So basically to get Matt to follow me, I have to go get a car and drive it around. I think so. And when it went a Grand Prix, all right, great, Thanks so much for joining us. We always love getting your thoughts there on the market. Avery Sheffield joins us now every Managing Director and Senior Portfolio off Long Short Equity head Funds Strategy at Rockefeller Asset Management. Every We just

got through great, great third quarter earnings. I thought i'd see more, hear more concern and guidance as it relates to supply chains, global supply chains. You know, they called it out it. We're still seeing some pretty good guidance there. What are your thoughts? Yes, I mean you know this as the supply chain concerns. Um, we're really in focus kind of late August, kind of beginning with one of

the major global footwear's announcements and then through September. You know, my instinct was that this was kind of a buy the dip opportunity because for key reasons, like one is um that when you we've seen when you have supply chain dynamics issues, it leads to less inventory and less inventory needs you know, less supply and and and and

that match with demand allows for pricing power. But from a fundamental perspective on supply chain, no, there there are a few companies that are heavily have been heavily reliant on UM and this is an apparel retail sector UM that have been heavily reliant on regions that have had significant shutdowns. And they are they're absolutely experiencing UM less supply.

But many, many, you know, apparel and an accessories manufacturers have distributed supply chains around the world, and it looked like they were going to be able to manage through this. You know, it's some incremental freight and shipping costs UM shifting around, you know, which inventories they were gonna hold. But it started to become evidence I think by October that many of the companies we're going to get through this relatively unscathed. And that's certainly what we've seen in

the results. I have got to ask, you have a degree in neuroscience UM from Pomona. First of all, what is that and is that like science of the brain? I think? And what and what does that? What? What kind of edge does that give you? Oh so yes, I am a neuroscience major, and that is a science of the brain, and it includes hard sciences as well as psychology. And look, I I studied it because I find I find how I find science and how the

human brain works to be fascinating. From a training perspective, this WI be speaking to anyone else looking to figure out what to study in college, certainly to become an investor or anything else. Um, something like neuroscience gives you just a very strong foundation in science, in the analytics and the math, um, asking questions, posing hypotheses, really trying to figure out, um, the answers to to open ended questions.

So that's I think good training for anyone. And then the psychology, of of course, is what what really plays in every day and behavioral finance is something and I find absolutely financing and assassinating and um and focus on kind of on a daily basis of how that's playing into my investment decisions and those of others. And you went from there to Wharton, so, uh, you clearly know what you're talking about when it comes to business as well.

What do you think about this renewed COVID explosion in Austria and Germany, we're seeing lockdowns, We're seeing mandated vaccines. Just when we thought it was kind of all over, right well, I mean, you know the nature of viruses, they keep coming around, right so UM, but the question is how severe are they when when they when? When they come around, and we're still seeing hospitalization rates flow.

I mean there are certain areas, right whereas a lot of unvaccinated people that you're seeing UM in Austria and a few other places that are UM that are causing you know, some concern and leading to these lockdowns. But I think we're really the tail end of it. I mean you, I mean, look, I think we're going to see small, a small breakouts of COVID for a long time. I mean, this virus is likely, you know, to mutate, but as long as we've seen in Israel UM, getting

those booster shots really works. And I think these vaccine mandates are really the answer. I mean a lot of the lockdowns we've seen, or they're not really lockdowns, but kind of slowing activity UM has been targeted to the unvaccinated in many countries, and moving towards these mandatory vaccinations I think is really the answer. Yep, I am vaxed and boost. It's all set to go. Every Sheffield Managing director and senior portfolio managed for Long Short Equity head

fun Strategy at Rockefeller Asset Management. I want to get over right now to Jonathan Wade, he joins a senior research channelist at Frost Investment Advisors. And before we get into the meat of this uh interview, I gotta ask you about a piece I saw in your bio. It says, um current CFA, which I respect greatly and former c p A for twenty plus years. I thought being a c p A was like being a marine. Aren't you like always a c p A once you were a

c p A. No. I kind of kind of leave that in the background, you know, because everyone wants you to ask accounting your tax question to you, So I leave that in the background exactly. Yeah, all right, Jonathan. UM, we've just come through some really good third quarter earnings. UM. I think for a lot of people that gave them. If you just look at the market reaction, that's kind of what the market needed for this next leg. What's

your earnings outlook? Do you feel like this market's expensive or did the earning story kind of come through on that old pe analysis. Well, I mean, yeah, that's a mixed question, right, I mean, because the valuation here is a little a little pricey. But on the backdrop of this,

earnings look great, the economic outlook looks great. Um. The when you think about the consumer being two thirds of g d P in great shape, um under levered on their balance sheet, ability to spend more, the intentions to spend over the next twelve months or like an all time high, and then you look at a business spending the economy and capex intentions are high, cash on balance

sheet is very high. So we're cautiously optimistic as we roll through the fourth quarter in two with the question being, you know what happens with COVID and we're getting a fresh out of that today. Yeah, exactly. I mean I woke up this morning, perused the markets around three, and then uh, I started listening to um Blues Traveler record, you know, the one with Dance with Me Felicia. I

love that that record. And I looked back and all of a sudden, I saw the dollar index was shooting up, and the yen was gaining a lot of strength, and there was a bit in bonds, and I thought what the heck is going on? This has got to be

the COVID numbers, and indeed it was. Uh if that turns into a real problem for the global economy, art stocks, price for for perfection, well, I think at a certain point you just we're gonna need to have to look through COVID, you know, because it's it's not going to be with us forever. We're eventually going to roll through this. We like you said, we have the fighter pill that's out there. Um, you know you think that that would give you some reassurance that we're going to have some

return to normalcy soon. So alright, So Jonathan, what are the areas that you guys are doing working right now? I know there's a couple of camps out there. I'm sticking with the you know, the big growth stocks that have been so good to me for so long, and the other camps say, now I'm swinging for the cyclical trade here the reopening trade, and um, where do you guys think about opportunity? Um? Well, see, we're you know,

broad investors. We value strategies and growth strategies. So uh, you know, on these when we look to two, I think there is the thought that we could see a little bit of a cyclical bump at least in the first half of the year on that reopening trade. So yeah, we think there is a little bit of legs left in that reopening trade, especially travel names that are getting cocked today, and we think that they should see some

improvement rolls through. But also on the growth side, it's I mean it's again you still have valuation to deal with. You have the retail investor in there that's just crowding into these momentum names. But otherwise we think that the tech secular tail winds are here to stay and we'll see a continuation of that through the next few years. Yeah, the airline's got have gotten battered again today. I think Ryan Air is down ten sessions in a row, and I was looking at UM Ryan Air, I A G

and Leftanza today. Ryan Air over the last five years is the only one that's given you any kind of games, and that's only ten Liftanza and UH and I A G are both down I think six and nine per year respectively over the last five years. You don't really want to invest in airline stock, do you, well, and they've got the double Emmy of of energy prices moving against them, and labor, labor, labor, Yeah, yeah, exactly, and that's going to just be a huge destruction this upcoming

holiday season. So you know, I've got a daughter coming home from college. I hope she makes it for the holidays, So I hope she does too. Absolutely all right, Jonathan, thanks so much for joining us. Jonathan Waite, Senior Research Channel's Frost Investment Advisers. Thanks for listening to the Bloomberg Markets podcast. You can subscribe and listen to interviews with Apple Podcasts or whatever podcast platform you prefer. I'm Matt Miller. I'm on Twitter at Matt Miller three. On Faull Sweeney,

I'm on Twitter at pt Sweeney. Before the podcast. You can always catch us worldwide at Bloomberg Radio.