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[00:00.000 --> 00:05.560]  received about 26% of the vote. South Bend, Indiana, Mayor Pete Buttigieg was a close
[00:05.560 --> 00:11.240]  second followed by Minnesota Senator Amy Klobuchar. Massachusetts Senator Elizabeth Warren and
[00:11.240 --> 00:16.960]  former Vice President Joe Biden finished well behind.
[00:16.960 --> 00:21.640]  That cruise ship that was barred from docking in four countries has found a place to disembark
[00:21.640 --> 00:27.100]  the more than 2,200 people on board. Operators of the Westerdam say the vessel will dock
[00:27.100 --> 00:33.760]  in Cambodia on Thursday. The ship was turned away by Thailand, Taiwan, Japan and the Philippines
[00:33.760 --> 00:39.100]  because of fears that those aboard could spread a virus that originated in China. Holland
[00:39.100 --> 00:44.280]  America Line says there are no confirmed cases on board the ship.
[00:44.280 --> 00:49.080]  In Germany, the search to replace Angela Merkel as chancellor is getting underway. Pressure
[00:49.080 --> 00:54.240]  is growing among Germany's conservative factions to speed up the process to choose a candidate
[00:54.240 --> 00:59.120]  for the next election. Chancellor Merkel's heir apparent shook up German politics Monday
[00:59.120 --> 01:02.560]  by declaring she would step down as the governing party's leader.
[01:02.560 --> 01:07.440]  Huawei technologies of being able to tap into mobile phone networks. National Security
[01:07.440 --> 01:13.280]  Advisor Robert O'Brien says officials believe the Chinese company uses back doors designed
[01:13.280 --> 01:18.880]  for use by law enforcement. Huawei is rejecting the allegations. The Trump administration
[01:18.880 --> 01:23.440]  has been urging allies to bar Huawei from their networks.
[01:23.440 --> 01:29.920]  Global News 24 hours a day on air and on QuickTake by Bloomberg. Powered by more than 2,700 journalists
[01:29.920 --> 01:51.800]  and analysts in over 120 countries. I'm Mark Crumpton. This is Bloomberg.
[01:51.800 --> 01:58.360]  And live in Toronto, I'm Amanda Lang. Welcome to Bloomberg Markets. We're now joined by
[01:58.360 --> 02:02.640]  both our Bloomberg and our BNN Bloomberg audiences.
[02:02.640 --> 02:06.640]  Day two for Powell. The Fed Chair continues his testimony on Capitol Hill, striking a
[02:06.640 --> 02:12.360]  dovish tone. What his remarks on the central bank's efforts to increase labor force participation
[02:12.360 --> 02:17.200]  could mean for rates. And another day, another record. U.S. stocks are in the green with
[02:17.200 --> 02:22.400]  the S&P 500 and the Dow Jones industrials climbing to all time highs. Treasury yields
[02:22.400 --> 02:29.160]  have advanced in lockstep. Crude climbs oil inches above $51 a barrel, even as OPEC slashes
[02:29.160 --> 02:34.520]  its forecast for global demand and U.S. inventories were above estimates.
[02:34.520 --> 02:40.140]  Let's get you started with a quick check of our markets are trading in the afternoon session.
[02:40.140 --> 02:45.080]  We are seeing risk on sentiment with U.S. stocks at a record high. Treasury yields also
[02:45.080 --> 02:50.880]  rising at the same time. We are seeing the S&P 500 being led higher by consumer discretionary
[02:50.880 --> 02:56.200]  and energy stocks. Interesting oil is still above $51 a barrel despite the fact that OPEC
[02:56.200 --> 03:00.520]  came out and slashed their forecast for global demand this year. Not to mention the U.S.
[03:00.520 --> 03:04.880]  inventories are higher than expected, came in higher than expected. We're seeing the
[03:04.880 --> 03:09.000]  Dow gaining seven tenths of one percent. Of course, we're seeing a little bit more optimism
[03:09.000 --> 03:13.040]  given that we are seeing the spread of the coronavirus slowing down. In fact, when it
[03:13.040 --> 03:18.680]  came to Hubei Province, the epicenter of the outbreak, we saw the lowest number of new
[03:18.680 --> 03:24.080]  cases this month. Still worth mentioning that there is uncertainty out there. Of course,
[03:24.080 --> 03:28.220]  virus death toll has topped 1,100 already. Not to mention that we're seeing this deep
[03:28.220 --> 03:33.720]  slump in industrial production continuing in Europe. So take a look at this chart because
[03:33.720 --> 03:39.560]  if you want to hedge amid this environment, the yen might be a better option than gold.
[03:39.560 --> 03:44.600]  At least it would be a cheaper option. You're seeing the skew on the yen against the U.S.
[03:44.600 --> 03:52.120]  dollar, which shows bullish call options against puts. That now lower below that of gold. So
[03:52.120 --> 03:57.200]  Morgan Stanley saying that the yen could be a better bet when it comes to hedging tail
[03:57.200 --> 04:02.760]  risk at the moment, Amanda. Yeah, really interesting. And I want to show you another chart inside
[04:02.760 --> 04:09.340]  the terminal here. And this is the S&P 500, its valuation relative to its 20-day moving
[04:09.340 --> 04:14.440]  average. We're now seeing it at the highest level that it has seen in a 200-day moving
[04:14.440 --> 04:19.840]  average, pardon me, in two years. It's about an 11% Delta here. So just in terms of where
[04:19.840 --> 04:25.080]  things stand on a valuation basis, getting lofty in terms of where it trades here. And
[04:25.080 --> 04:29.080]  we do have some breaking news. Even as we see kind of a calming down of concerns about
[04:29.080 --> 04:34.460]  the coronavirus, we learned that the mobile world Congress has been canceled by GSMA because
[04:34.460 --> 04:37.800]  of that coronavirus. Now there had been participants who had already said they would not attend
[04:37.800 --> 04:42.280]  the mobile world Congress. And so perhaps this is just a simple reflection of the fact
[04:42.280 --> 04:46.880]  that that was going to be already affected by it. But that is the news that we can now
[04:46.880 --> 04:51.480]  bring to you that mobile world Congress has been canceled. And that virus, of course,
[04:51.480 --> 04:55.500]  was a topic for Fed Chair Jay Powell this week in his two days of testimony on Capitol
[04:55.500 --> 04:59.700]  Hill. Michael McKee, Bloomberg International Economics and Policy correspondent with us
[04:59.700 --> 05:05.740]  now with key takeaways. And today, Mike, the focus does seem to be on wage and sort
[05:05.740 --> 05:10.400]  of the job picture. Just a big picture in terms of what you're hearing from Jay Powell.
[05:10.400 --> 05:14.140]  What's your biggest sort of takeaway from it all? Well, you start with the coronavirus
[05:14.140 --> 05:18.620]  and the Fed's inability to really put any kind of numbers on what kind of damage it
[05:18.620 --> 05:23.060]  might do to the global or U.S. economies. Jay Powell telling the Senate Banking Committee
[05:23.060 --> 05:27.700]  today it should have a significant impact on the Chinese economy, but they don't really
[05:27.700 --> 05:31.520]  have good numbers yet. And of course, if it affects the Chinese, it will affect their
[05:31.520 --> 05:35.780]  trading partners, Powell said. And there may be some impact on the United States, but it
[05:35.780 --> 05:40.340]  all depends on how long it lasts. That was the news in terms of any kind of thoughts
[05:40.340 --> 05:45.420]  of what the Fed might do in terms of interest rates going forward. Much of the rest of the
[05:45.420 --> 05:51.660]  time was spent, as you said, on sort of political topics. The idea of whether or not the Fed
[05:51.660 --> 05:56.900]  can do anything to increase employment beyond what it's already doing. And Powell basically
[05:56.900 --> 06:01.260]  said we're letting things run hot. We've learned our lesson. Inflation is not rising. We'll
[06:01.260 --> 06:06.380]  let it go and see how low it can go. But to really boost the economy, you guys up on the
[06:06.380 --> 06:11.820]  dais, the senators and representatives need to do more on the fiscal side. Yeah, when
[06:11.820 --> 06:15.220]  it comes to that fiscal warning, of course, also coming on the back of President Trump's
[06:15.220 --> 06:19.940]  new budget, which would really increase the deficit spending. What else did Powell have
[06:19.940 --> 06:23.580]  to say on that front? Well, he was asked about it and he said, you know, he worries about
[06:23.580 --> 06:28.380]  the deficit right now, even though it isn't a threat right now. We're not seeing higher
[06:28.380 --> 06:32.180]  interest rates, but he does want to see it brought down over the long run. And one reason
[06:32.180 --> 06:36.740]  is in the case of a recession, the Fed might not have the tools it needs to completely
[06:36.740 --> 06:41.500]  fight it, and they would want fiscal help as well. And with big deficits, he's afraid
[06:41.500 --> 06:46.760]  that the Congress won't be able to respond. And of course, all of this we have to keep
[06:46.760 --> 06:52.260]  in the context that we don't yet know, Mike, the full extent of sort of damage done economically
[06:52.260 --> 06:57.140]  to business, even in some ways to confidence, although that may now be muted. How much do
[06:57.140 --> 07:00.860]  you think this is factoring in and will have to keep factoring into what the Fed is thinking
[07:00.860 --> 07:05.900]  as they watch data come in related to sort of global friction around Corona? Well, they
[07:05.900 --> 07:10.180]  will watch the data come in. Even if you took the coronavirus out of the equation, they
[07:10.180 --> 07:15.580]  would be watching to see if there were a positive reaction to the phase one trade deal and the
[07:15.580 --> 07:20.760]  idea that maybe the global economy had bottomed out. Now we got bad economic data out of Europe
[07:20.760 --> 07:26.180]  today that suggests maybe Powell was premature in saying that, but they're going to be watching
[07:26.180 --> 07:31.060]  the data. They're in no hurry to change rates one way or another. An interest rate increase
[07:31.060 --> 07:35.500]  is off the table, but whether they would cut rates like Wall Street wants right now, that's
[07:35.500 --> 07:39.940]  not on their table. They're going to wait and see. Mike McKee, thank you very much for
[07:39.940 --> 07:44.380]  the latest on Chair Powell's testimony today in Congress. For more on the market reaction
[07:44.380 --> 07:50.860]  and the virus impact as well on the markets, let's go to Luke Cowell. He's our cross asset
[07:50.860 --> 07:56.100]  reporter joining me now here in New York. Luke, so we are seeing a positive sentiment
[07:56.100 --> 08:00.740]  across the board, stocks rising, yields rising, but how much of this has to do with anything
[08:00.740 --> 08:07.820]  on how positively Powell portrayed the economy and just virus concerns retreating? Probably
[08:07.820 --> 08:13.180]  a lot more on the latter there. Just in the absence of news flows surrounding the virus
[08:13.180 --> 08:18.480]  getting materially worse, we're probably going to move away from the kind of the depths of
[08:18.480 --> 08:22.900]  recession fear type pricing we had in the 10 year yield. And if you look at kind of
[08:22.900 --> 08:26.920]  the range that yields have settled in now, it's been interesting to see pretty much if
[08:26.920 --> 08:32.100]  we hold this daily range, the past two days will be among the least the 10 years moved
[08:32.100 --> 08:36.500]  this year. So it's not only the fact that yields are kind of settling into the middle
[08:36.500 --> 08:41.060]  of what could be a 20 basis point range. They've tended to trade in ranges of about that and
[08:41.060 --> 08:44.620]  then have a crazy move in one direction or another. But they're also kind of calming
[08:44.620 --> 08:48.460]  down on the internet. At the end of the day, though, are we just headed towards lower yields?
[08:48.460 --> 08:53.980]  Given that we are seeing these global growth forecasts and the impact that the virus is
[08:53.980 --> 08:58.060]  having not only in the Chinese economy, but yields are rising, but we're still at 162.
[08:58.060 --> 09:02.500]  Yeah, exactly. This isn't these aren't necessarily high burn costs by any stretch of the imagination.
[09:02.500 --> 09:06.940]  No one's expecting them to get materially higher. However, you know, there is a sense
[09:06.940 --> 09:11.220]  and even as Powell does strike, you know, kind of a dovish note while still signaling
[09:11.220 --> 09:15.780]  confidence in the U.S., they definitely, as Mike said, they're not in no hurry to to lower
[09:15.780 --> 09:19.980]  rates. We got a signal overnight, I believe, from the Airbnb that kind of even they are
[09:19.980 --> 09:25.260]  not leaping on the train to necessarily cut rates in the face of the coronavirus. So the
[09:25.260 --> 09:30.300]  central bank response or the market kind of interpretation of how aggressively central
[09:30.300 --> 09:34.580]  banks will respond to that has probably been a little over overstated so far. So that as
[09:34.580 --> 09:39.500]  a driver of lower yields, probably not. But just the fact that growth and inflation haven't
[09:39.500 --> 09:45.420]  really picked up in years and aren't expected to. That's probably the more enduring trend.
[09:45.420 --> 09:50.340]  And then where does the correlation between equities and fixed income fit in here, Luke?
[09:50.340 --> 09:54.580]  So that's been interesting to watch that really snap back in. Cameron Christ did a good job
[09:54.580 --> 09:58.740]  of highlighting that this morning on the MLive blog. We have essentially now for a while
[09:58.740 --> 10:04.700]  early in January, stocks and bond yields were fairly negatively correlated. Their stock
[10:04.700 --> 10:09.620]  would manage to rise even when yields are falling. And this was essentially a software
[10:09.620 --> 10:14.780]  to the moon trade, even as cyclicals were fading. Right now, it's kind of the situation
[10:14.780 --> 10:18.460]  that's flipped back to what you might get a little more normal. Stocks rising, bond
[10:18.460 --> 10:22.340]  yields rising in tandem. And that just I think that shows that you get to a certain
[10:22.340 --> 10:26.660]  point in markets where you can't make the valuation excuse anymore, where you can't
[10:26.660 --> 10:31.420]  say that falling yields are just always and everywhere a good thing for risk asset valuations
[10:31.420 --> 10:34.940]  because they were starting to really, really send a potentially negative signal about the
[10:34.940 --> 10:39.900]  growth outlook. And now as yields rise, it's more having to do with some of the tail risk,
[10:39.900 --> 10:44.380]  whether rightly or wrongly, based on how limited information we have at this juncture, kind
[10:44.380 --> 10:45.380]  of being ebbed away at.
[10:45.380 --> 10:52.700]  All right, Luke, Luke, great to have you with us. Appreciate it. Coming up, lawmakers, Democratic
[10:52.700 --> 10:56.900]  and now Republican, are stepping up their efforts to fight climate change and addressing
[10:56.900 --> 11:01.340]  the nation's aging water systems as high on the to-do list. We'll discuss the evolving
[11:01.340 --> 11:11.300]  topic of water safety with professor and public health expert Kellogg Schwab. This is Bloomberg.
[11:11.300 --> 11:15.940]  Bloomberg Television brought to you by Principle Financial Group, committed to delivering specialized
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[12:12.460 --> 12:30.500]  Hi, again. That belongs to me.
[12:30.500 --> 12:49.660]  Hi.
[12:49.660 --> 12:55.460]  Climate change is the defining issue of our time, so we've redefined how we cover it.
[12:55.460 --> 13:01.060]  With clear data and rigorous journalism, we rise to the scale of the challenge to reveal
[13:01.060 --> 13:08.260]  the breadth of possibility. We look at stories from every angle to provoke debate, spotlight
[13:08.260 --> 13:15.220]  solutions, and make sense of the greatest crisis of our generation. Bloomberg Green,
[13:15.220 --> 13:23.780]  solutions for a changing climate.
[13:23.780 --> 13:27.300]  This is Bloomberg Markets, I'm Sherry Yonni, New York.
[13:27.300 --> 13:32.140]  And I'm Amanda Lang in Toronto. House Republicans are unveiling their plan to combat climate
[13:32.140 --> 13:36.460]  change today in answer to Democrats who have dominated on the issue. More public health
[13:36.460 --> 13:40.860]  officials are calling for water safety to be prioritized as part of the efforts. It's
[13:40.860 --> 13:44.900]  already playing out at the state level. New Hampshire Governor Chris Sununu spoke with
[13:44.900 --> 13:49.100]  Bloomberg yesterday about his own plan.
[13:49.100 --> 13:53.500]  We're making a huge investment in clean drinking water infrastructure here. About $400 million
[13:53.500 --> 13:56.940]  dollar investment. No taxpayer dollars. We're using it from the settlement money we got
[13:56.940 --> 14:01.060]  from Exxon years ago. So we're doing it kind of taxpayer free and allowing those dollars
[14:01.060 --> 14:05.580]  to go at the very local level.
[14:05.580 --> 14:09.540]  For more, we welcome Kellogg Schwab, professor of water and public health at Johns Hopkins.
[14:09.540 --> 14:13.980]  He joins us from Baltimore. And professor, it's so interesting to hear the governor stress,
[14:13.980 --> 14:19.020]  you know, no tax dollars in a way that almost undermines the importance of the issue. Tax
[14:19.020 --> 14:23.620]  dollars could very well be directed to this. Are we missing the point or the importance
[14:23.620 --> 14:25.620]  of water safety?
[14:25.620 --> 14:30.260]  Water safety is incredibly important. A drink of clean, safe water from the tap is one of
[14:30.260 --> 14:35.420]  the most undervalued assets of American life. These climate change stressors, including
[14:35.420 --> 14:40.500]  extreme rain and drought, are putting pressure on our existing water supplies as well as
[14:40.500 --> 14:44.740]  in our aging drinking water and wastewater infrastructure that can affect public health
[14:44.740 --> 14:50.020]  and the business sector. So it's incredibly important that we engage together in finding
[14:50.020 --> 14:51.460]  these important solutions.
[14:51.460 --> 14:56.180]  Professor, how important is clean water for the economy? And how important is it to shape
[14:56.180 --> 14:59.620]  it and frame it as an economic issue?
[14:59.620 --> 15:03.880]  It's incredibly important. Deloitte just recently put out a report in where they said that there's
[15:03.880 --> 15:10.740]  a staggering 240,000 water main breaks per year in the United States, costing an estimated
[15:10.740 --> 15:16.060]  $2.4 billion. That's just to repair the leaks. That doesn't have the important drivers of
[15:16.060 --> 15:22.060]  economic value of water. All of our sectors, not only households, but businesses, hospitals,
[15:22.060 --> 15:27.380]  even farming, rely on safe water. And we need to have that continued reliance and ability
[15:27.380 --> 15:34.220]  to have safe waters provided and adequate removal of our waste to have a thriving economy.
[15:34.220 --> 15:37.300]  I think there's an understanding that from an infrastructure point of view, there's
[15:37.300 --> 15:41.180]  a mountain to climb here regardless. Right across North America, we have aging infrastructure
[15:41.180 --> 15:46.300]  that needs upgrading. Are we doing that in a way that's thoughtful about climate change,
[15:46.300 --> 15:50.380]  about the additional requirements we will face in the coming years?
[15:50.380 --> 15:55.260]  Yes, climate change brings that unknown factor. They're starting to understand we have an
[15:55.260 --> 16:00.220]  existing infrastructure of water, our pipes that provide drinking water and wastewater
[16:00.220 --> 16:03.620]  removal. There's hundreds of thousands of miles of these pipes. They're worth trillions
[16:03.620 --> 16:08.820]  of dollars. But sadly, they're underground. They're ignored. And with that ignoring, we've
[16:08.820 --> 16:13.380]  also not repaired or replaced them. There's cost estimates anywhere from tens to hundreds
[16:13.380 --> 16:17.940]  of billions of dollars to maintain and repair them. If we put on top of that climate change
[16:17.940 --> 16:22.620]  with these increased stresses, we know that there will be variances in the amount of rain
[16:22.620 --> 16:26.660]  and the amount of drought, and that will add to this problem. But we have some solutions
[16:26.660 --> 16:31.420]  we can do. We can start figuring out better ways to appreciate the value of water, putting
[16:31.420 --> 16:36.540]  the appropriate costs into it, and conserving water. And water use is an important part
[16:36.540 --> 16:37.700]  of that.
[16:37.700 --> 16:41.260]  How would you assess the Trump administration's policy on this front?
[16:41.260 --> 16:47.180]  Again, at the government level, it's important to realize that these are decades-long challenges,
[16:47.180 --> 16:51.600]  and we also have to have solutions that are long-term, not short-term in there. So each
[16:51.600 --> 16:56.200]  administration has its own values and interests in there. But overall, the United States has
[16:56.200 --> 17:02.740]  built a very robust economy based in many parts on access to water and removal of waste.
[17:02.740 --> 17:08.380]  And those will continue to thrive and survive these permutations. That said, it is important
[17:08.380 --> 17:13.900]  to realize that there are federal regulations that allow us to drive both improving economic
[17:13.900 --> 17:20.220]  and public health sectors. And this is an important thing to continue to consider.
[17:20.220 --> 17:26.160]  Do you think that we are correctly or adequately addressing the fact that water is not an endlessly
[17:26.160 --> 17:29.840]  renewable resource? I mean, there are already, obviously, parts of the world, but certainly
[17:29.840 --> 17:34.060]  parts of America, that are experiencing real water shortages, and some of them are permanent
[17:34.060 --> 17:38.300]  in nature. Are we on top of that issue as a live fact that we could have to deal with
[17:38.300 --> 17:40.420]  in our lifetime?
[17:40.420 --> 17:45.740]  I don't think we're quite there yet. Obviously, certain states, California, for example, Arizona,
[17:45.740 --> 17:50.400]  and even Florida, are pushing water reuse. That's this idea that we can consider this
[17:50.400 --> 17:54.620]  as not a one-off. You can't just take water, use it for one thing, and discard it. We have
[17:54.620 --> 17:58.780]  to consider it part of our entire system. And we can all do better. Here in the East
[17:58.780 --> 18:03.180]  Coast, we've considered to have lots of water, but we're under water stress as well. So across
[18:03.180 --> 18:08.560]  the country, we need to continue to drive innovation and innovative ways that will improve
[18:08.560 --> 18:14.480]  not only water availability, but the business sector's reduction of water use. And there
[18:14.480 --> 18:18.600]  is a market to be made in this. As we go forward, we have to be engaged in a way that can be
[18:18.600 --> 18:26.540]  proactive to produce high-quality water, still relying on basic public health principles.
[18:26.540 --> 18:30.180]  At the end of the day, it will all come down to cost, right? How much it would cost to
[18:30.180 --> 18:35.220]  actually make all of these improvements. Where would those funds come from?
[18:35.220 --> 18:39.220]  That's a challenging question. What sadly happened is over the decades, we've ignored
[18:39.220 --> 18:44.460]  the true value of water. We built these pipes hundreds of years ago, decades ago, and then
[18:44.460 --> 18:48.600]  we haven't valued what it means to maintain that high-quality water because the pipes
[18:48.600 --> 18:52.460]  are hidden underground. Now, raising water bills is an important part of that, but a
[18:52.460 --> 18:56.760]  tariff structure is important. We also need to consider that there's a business approach
[18:56.760 --> 19:00.940]  to this as well. At the government level, we do need to invest this. There's ideas of
[19:00.940 --> 19:06.680]  an infrastructure. You see the roads, you see the bridges, but within our pipe system,
[19:06.680 --> 19:11.340]  we have a need, and there's jobs to be made in this, to push forward the resources that
[19:11.340 --> 19:19.980]  allow us to have a thriving economy. The American Civil Engineers Society has estimated that
[19:19.980 --> 19:24.940]  there's going to be a cost to the households of $46 billion over seven years and to the
[19:24.940 --> 19:31.660]  business sector of $140 billion. But there's also ways that we can have higher-quality
[19:31.660 --> 19:38.580]  water that can improve both resources and provide jobs. It's estimated that 1.1 million
[19:38.580 --> 19:43.100]  jobs could be provided by having the sector be part of that economic thriving building.
[19:43.100 --> 19:47.820]  Professor, thank you very much for joining us today. Kellogg Schwab from the Johns Hopkins
[19:47.820 --> 19:51.500]  Bloomberg School of Public Health. The Bloomberg School of Public Health is supported by Michael
[19:51.500 --> 19:56.340]  Bloomberg, founder of Bloomberg LP and Bloomberg Philanthropies. Coming up, we take a deeper
[19:56.340 --> 20:00.580]  look into the cancellation of the Mobile World Congress as the impact of the coronavirus
[20:00.580 --> 20:09.060]  continues to spread. This is Bloomberg.
[20:09.060 --> 20:38.820]  Interact with us online at legacybox.com.
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[22:12.860 --> 22:15.260]  This is Bloomberg Markets. I'm Amanda Lang in Toronto.
[22:15.260 --> 22:21.540]  And I'm Sherry Yan in New York. GSMA is canceling the Mobile World Congress in Barcelona 2020
[22:21.540 --> 22:27.220]  due to global concern over the coronavirus outbreak. GSMA CEO John Hoffman says the spread
[22:27.220 --> 22:31.540]  of the deadly virus makes it impossible to hold the event. For more, we welcome Mark
[22:31.540 --> 22:36.060]  Gurman of Bloomberg Technology from Los Angeles. Mark, so was this just inevitable given the
[22:36.060 --> 22:40.300]  number of companies that already pulled out, including those carriers who are supposed
[22:40.300 --> 22:43.460]  to be the buyers at this trade show, right?
[22:43.460 --> 22:48.900]  Exactly. Inventable is the best way to explain it. We've been anticipating this for the past
[22:48.900 --> 22:53.580]  few days. You've had basically every major player who would have been at the conference
[22:53.580 --> 23:00.660]  in Barcelona either pulling out or pressuring the GSMA, the parent company of this MWC conference,
[23:00.660 --> 23:07.380]  to pull out. We saw Sprint and AT&T yesterday. Qualcomm was just awaiting this announcement
[23:07.380 --> 23:11.740]  to happen. They're one of the bigger players there. Some of the companies like Samsung
[23:11.740 --> 23:17.180]  and Huawei privately have scaled back which executives they were going to send. You saw
[23:17.180 --> 23:21.980]  calendar invites being canceled for meetings that were being set up. This was bound to
[23:21.980 --> 23:27.260]  happen and for sure the right decision because they really had no other option. The other
[23:27.260 --> 23:31.500]  side of this, however, is the significant economic impact this is going to have on the
[23:31.500 --> 23:36.740]  city of Barcelona, which has been preparing to host this thing for several months now.
[23:36.740 --> 23:41.740]  Industry there, hotels, restaurants, different activities people would be engaging with from
[23:41.740 --> 23:46.120]  this conference, but also the budgets that were set aside by these companies in order
[23:46.120 --> 23:49.980]  to put on this conference and attend this conference, now that all has to be worked
[23:49.980 --> 23:52.300]  out as well.
[23:52.300 --> 23:56.380]  So obviously there will be some direct pain as you know to Barcelona, the conference organizers,
[23:56.380 --> 24:00.060]  maybe some savings on the part of the businesses that don't go, but what about some of the
[24:00.060 --> 24:05.420]  intangibles impacts here, Mark, of the collaborations that don't happen, the sales that don't get
[24:05.420 --> 24:08.940]  made, the ideas that don't get sparked. How do we measure any of that?
[24:08.940 --> 24:13.460]  Yeah, I mean immediately the way to measure this is basically these are a bunch of business
[24:13.460 --> 24:18.580]  deals and meetings that would just not happen otherwise, but on the other side of the coin
[24:18.580 --> 24:23.140]  it's 2020, right? What that means is a lot of these important meetings are likely to
[24:23.140 --> 24:27.780]  get rescheduled pretty quickly, whether that's via conference call or phone call or meetings
[24:27.780 --> 24:33.660]  elsewhere. The good news is travel and digital communication is so simple these days. So
[24:33.660 --> 24:38.820]  my wager would be if there was to be a super critical meeting between a company and a partner,
[24:38.820 --> 24:43.420]  it's going to happen anyways one way or another. So I don't think the impact is that severe
[24:43.420 --> 24:46.820]  if you really sit down and think about it on that aspect.
[24:46.820 --> 24:50.540]  Mark Gurman, Bloomberg Technology, thank you very much for joining us with the latest on
[24:50.540 --> 24:56.700]  the cancellation of the Mobile World Congress in Barcelona. And Amanda, it was a great day
[24:56.700 --> 25:01.860]  to be Korean when I saw the Parasite made history at the Oscars this week. They won
[25:01.860 --> 25:08.620]  that coveted Best Picture award, the first ever in the Oscars history given that it was
[25:08.620 --> 25:13.540]  a foreign language film, right? So it was really an amazing day, but it wasn't just
[25:13.540 --> 25:18.220]  Bong Joon-ho, the director they're celebrating. It was also a Korean hedge fund investing
[25:18.220 --> 25:23.380]  around $500,000 in the film. And remember, this only cost 11 million to make, but then
[25:23.380 --> 25:32.260]  it raked in 165 million. So given the type of reception that it's received, you can just
[25:32.260 --> 25:37.220]  imagine how well the hedge fund could do. And this GTV chart on the Bloomberg also showing
[25:37.220 --> 25:43.260]  you that Parasite was sure of this film. They gained what, like 90% this week. Take a look
[25:43.260 --> 25:44.260]  at that.
[25:44.260 --> 25:49.460]  Amazing. Lots of people who had the potential to help distribute this film and passed on
[25:49.460 --> 25:54.860]  it, of course, now kicking themselves. Sherry, it took Canadians about 22 hours to make a
[25:54.860 --> 26:00.060]  claim to this film. One of the actors, the guy that plays the son, is actually a Korean
[26:00.060 --> 26:03.260]  Canadian. He spent some of his childhood here, went to university here. So we know we're
[26:03.260 --> 26:05.020]  claiming a piece of this too.
[26:05.020 --> 26:08.860]  We both are.
[26:08.860 --> 26:12.020]  Remember Bloomberg users can interact with all the charts you see on the network. GTV
[26:12.020 --> 26:37.060]  Go is your function. From Toronto and New York, this is Bloomberg.
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[29:21.100 --> 29:25.620]  I'm Mark Crumpton with Bloomberg's First Word News. A global health official says it's,
[29:25.620 --> 29:30.820]  quote, way too early to try to predict the beginning of the end of the virus outbreak
[29:30.820 --> 29:36.380]  that began in China. Dr. Mike Ryan spoke at a news conference today at World Health Organization
[29:36.380 --> 29:41.000]  headquarters in Geneva, but he added that it is reassuring that the number of daily
[29:41.000 --> 29:47.340]  cases appears to be stabilizing. That's due mainly to China's huge public health operation,
[29:47.340 --> 29:51.820]  which has placed 60 million people under a lockdown.
[29:51.820 --> 29:56.100]  Former Massachusetts Governor Deval Patrick has drums after Patrick failed to secure one
[29:56.100 --> 30:00.940]  percent of the vote in the New Hampshire primary. He entered the Democratic race just three
[30:00.940 --> 30:05.580]  months across the country, focusing some of his energy on South Carolina, where he hoped
[30:05.580 --> 30:10.660]  to cut into Joe Biden's support among African Americans. But his campaign never caught fire,
[30:10.660 --> 30:15.260]  and he didn't qualify for any of the presidential debates.
[30:15.260 --> 30:19.460]  House Republicans boycotted an Intelligence Committee hearing today, as hard feelings
[30:19.460 --> 30:24.820]  remain following President Trump's impeachment. Congressman Devin Nunes, the panel's ranking
[30:24.820 --> 30:30.260]  Republican, complained in a letter to Intelligence Chairman Adam Schiff that under his leadership,
[30:30.260 --> 30:57.420]  the committee, quote, has.