Detecting language using up to the first 30 seconds. Use `--language` to specify the language
Detected language: English
[00:00.000 --> 00:05.240]  received about 26 percent of the vote. South Bend, Indiana, Mayor Pete Buttigieg was a
[00:05.240 --> 00:10.400]  close second, followed by Minnesota Senator Amy Klobuchar, Massachusetts Senator Elizabeth
[00:10.400 --> 00:16.960]  Warren, and former Vice President Joe Biden finished well behind.
[00:16.960 --> 00:21.720]  That cruise ship that was barred from docking in four countries has found a place to disembark
[00:21.720 --> 00:27.100]  the more than 2,200 people on board. Operators of the Western Dam 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 --> 00:59.140]  for the next election. Chancellor Merkel's heir apparent shook up German politics Monday
[00:59.140 --> 01:03.800]  by declaring she would step down as the governing party's leader. Huawei technologies of being
[01:03.800 --> 01:09.760]  able to tap into mobile phone networks. National Security Advisor Robert O'Brien says officials
[01:09.760 --> 01:15.800]  believe the Chinese company uses back doors designed for use by law enforcement. Huawei
[01:15.800 --> 01:21.440]  is rejecting the allegations. The Trump administration has been urging allies to bar Huawei from
[01:21.440 --> 01:23.440]  their networks.
[01:23.440 --> 01:29.480]  Global news 24 hours a day on air and on Quick Take by Bloomberg powered by more than 2,700
[01:29.480 --> 01:51.760]  journalists and analysts in over 120 countries. I'm Mark Crumpton. This is Bloomberg.
[01:51.760 --> 01:55.200]  Live from Bloomberg World Headquarters in New York.
[01:55.200 --> 01:58.400]  And live in Toronto, I'm Amanda Lang. Welcome to Bloomberg Markets. We're now joined by
[01:58.400 --> 02:02.680]  both our Bloomberg and our BNN Bloomberg audiences.
[02:02.680 --> 02:06.680]  Day two for Powell. The Fed chair continues his testimony on Capitol Hill, striking a
[02:06.680 --> 02:12.400]  dovish tone. What his remarks on the central bank's efforts to increase labor force participation
[02:12.400 --> 02:17.240]  could mean for rates. And another day, another record. U.S. stocks are in the green with
[02:17.240 --> 02:23.160]  the S&P 500 and the Dow Jones Industries climbing to all time highs. Treasury yields have advanced
[02:23.160 --> 02:29.920]  in lockstep. Crude climbs. Oil inches above $51 a barrel. Even as OPEC slashes its forecast
[02:29.920 --> 02:33.800]  for global demand and U.S. inventories were above estimates.
[02:33.800 --> 02:40.160]  Let's get you started with a quick check of markets are trading in the afternoon session.
[02:40.160 --> 02:45.120]  We are seeing risk on sentiment with U.S. stocks at a record high. Treasury yields also
[02:45.120 --> 02:50.920]  rising at the same time. We are seeing the S&P 500 being led higher by consumer discretionary
[02:50.920 --> 02:55.960]  and energy stocks. Interesting oil is still above $51 a barrel, despite the fact that
[02:55.960 --> 03:00.440]  OPEC came out and slashed their forecast for global demand this year. Not to mention the
[03:00.440 --> 03:04.840]  U.S. inventories are higher than expected, came in higher than expected. We're seeing
[03:04.840 --> 03:09.280]  the Dow gaining seven-tenths of 1%. Of course, we're seeing a little bit more optimism given
[03:09.280 --> 03:13.720]  that we are seeing the spread of the coronavirus slowing down. In fact, when it came to Hubei
[03:13.720 --> 03:21.040]  province, the epicenter of the outbreak, we saw the lowest number of new cases this month.
[03:21.040 --> 03:24.760]  Still worth mentioning that there is uncertainty out there. Of course, the virus death toll
[03:24.760 --> 03:30.260]  has topped 1,100 already. Not to mention that we're seeing this deep slump in industrial
[03:30.260 --> 03:34.320]  production continuing in Europe. So take a look at this chart, because if you want to
[03:34.320 --> 03:40.200]  hedge amid this environment, the yen might be a better option than gold. At least it
[03:40.200 --> 03:45.080]  will be a cheaper option. You're seeing the skew on the yen against the U.S. dollar, which
[03:45.080 --> 03:52.720]  shows bullish call options against puts. That now lower below that of gold. So Morgan Stanley
[03:52.720 --> 03:57.760]  saying that the yen could be a better bet when it comes to hedging tail risk at the
[03:57.760 --> 03:58.760]  moment, Amanda.
[03:58.760 --> 04:03.800]  Yeah, really interesting. And I want to show you another chart inside the terminal here.
[04:03.800 --> 04:10.400]  This is the S&P 500, its valuation relative to its 20-day moving average. We're now seeing
[04:10.400 --> 04:16.120]  it at the highest level that it has seen in 200-day moving average, pardon me, in two
[04:16.120 --> 04:20.520]  years. It's about an 11 percent delta here. So just in terms of where things stand on
[04:20.520 --> 04:25.480]  a valuation basis, getting lofty in terms of where it trades here. And we do have some
[04:25.480 --> 04:30.320]  breaking news. Even as we see kind of a calming down of concerns about the coronavirus, we
[04:30.320 --> 04:35.120]  learn that the Mobile World Congress has been canceled by GSMA because of that coronavirus.
[04:35.120 --> 04:38.400]  Now, there had been participants who had already said they would not attend the Mobile World
[04:38.400 --> 04:43.040]  Congress. And so perhaps this is just a simple reflection of the fact that it was going to
[04:43.040 --> 04:47.800]  be already affected by it. But that is the news that we can now bring to you, that Mobile
[04:47.800 --> 04:52.520]  World Congress has been canceled. And that virus, of course, was a topic for Fed Chair
[04:52.520 --> 04:57.360]  Jay Powell this week in his two days of testimony on Capitol Hill. Michael McKee, Bloomberg
[04:57.360 --> 05:01.960]  International Economics and Policy correspondent with us now with key takeaways. And today,
[05:01.960 --> 05:08.240]  Mike, the focus does seem to be on wage and sort of the job picture. Just a big picture
[05:08.240 --> 05:11.760]  in terms of what you're hearing from Jay Powell. What's your biggest sort of takeaway from
[05:11.760 --> 05:16.520]  it all? Well, you start with the coronavirus and the Fed's inability to really put any
[05:16.520 --> 05:21.000]  kind of numbers on what kind of damage it might do to the global or U.S. economies.
[05:21.000 --> 05:25.500]  Jay Powell telling the Senate Banking Committee today it should have a significant impact
[05:25.500 --> 05:29.960]  on the Chinese economy, but they don't really have good numbers yet. And of course, if it
[05:29.960 --> 05:33.760]  affects the Chinese, it will affect their trading partners, Powell said. And there may
[05:33.760 --> 05:37.960]  be some impact on the United States, but it all depends on how long it lasts. That was
[05:37.960 --> 05:43.320]  the news in terms of any kind of thoughts of what the Fed might do in terms of interest
[05:43.320 --> 05:48.360]  rates going forward. Much of the rest of the time was spent, as you said, on sort of political
[05:48.360 --> 05:54.800]  topics, the idea of whether or not the Fed can do anything to increase employment beyond
[05:54.800 --> 05:59.040]  what it's already doing. And Powell basically said we're letting things run hot. We've learned
[05:59.040 --> 06:03.880]  our lesson. Inflation's not rising. We'll let it go and see how low it can go. But to
[06:03.880 --> 06:08.840]  really boost the economy, you guys up on the dais, the senators and representatives need
[06:08.840 --> 06:13.480]  to do more on the fiscal side. Yeah, when it comes to that fiscal warning, of course,
[06:13.480 --> 06:17.720]  also coming on the back of President Trump's new budget, which would really increase the
[06:17.720 --> 06:21.720]  deficit spending. What else did Powell have to say on that front? Well, he was asked about
[06:21.720 --> 06:26.800]  it and he said, you know, he worries about the deficit right now, even though it isn't
[06:26.800 --> 06:29.940]  a threat right now. We're not seeing higher interest rates, but he does want to see it
[06:29.940 --> 06:35.000]  brought down over the long run. And one reason is in the case of a recession, the Fed might
[06:35.000 --> 06:38.920]  not have the tools it needs to completely fight it. And they would want fiscal help
[06:38.920 --> 06:45.360]  as well. And with big deficits, he's afraid that the Congress won't be able to respond.
[06:45.360 --> 06:48.840]  And of course, all of this, we have to keep in the context that we don't yet know, Mike,
[06:48.840 --> 06:54.760]  the full extent of sort of damage done economically to business, even in some ways to confidence,
[06:54.760 --> 06:59.040]  although that may now be muted. How much do you think this is factoring in and we'll have
[06:59.040 --> 07:03.640]  to keep factoring into what the Fed is thinking as they watch data come in related to sort
[07:03.640 --> 07:08.200]  of global friction around Corona? Well, they will watch the data come in. Even if you took
[07:08.200 --> 07:13.140]  the coronavirus out of the equation, they would be watching to see if there were a positive
[07:13.140 --> 07:18.160]  reaction to the phase one trade deal and the idea that maybe the global economy had bottomed
[07:18.160 --> 07:22.640]  out. Now, we got bad economic data out of Europe today that suggests maybe Powell was
[07:22.640 --> 07:27.920]  premature in saying that. But they're going to be watching the data. They're in no hurry
[07:27.920 --> 07:32.560]  to change rates one way or another. An interest rate increases off the table. But whether
[07:32.560 --> 07:36.760]  they would cut rates like Wall Street wants right now, that's not on their table. They're
[07:36.760 --> 07:41.140]  going to wait and see. Mike McKee, thank you very much for the latest on Chair Powell's
[07:41.140 --> 07:46.240]  testimony today in Congress. For more on the market reaction and the virus impact as well
[07:46.240 --> 07:52.400]  on the markets, let's go to Luke Howe. He's our cross-asset reporter joining me now here
[07:52.400 --> 07:58.520]  in New York. So we are seeing a positive sentiment across the board. Stocks rising, yields rising.
[07:58.520 --> 08:04.640]  But how much of this has to do with anything on how positively Powell portrayed the economy
[08:04.640 --> 08:10.780]  and just virus concerns retreating? Probably a lot more on the ladder there. Just in the
[08:10.780 --> 08:15.320]  absence of news flows surrounding the virus getting materially worse, we're probably going
[08:15.320 --> 08:21.120]  to move away from the kind of the depths of recession, fear type pricing we had in the
[08:21.120 --> 08:25.520]  10-year yield. And if you look at kind of the range that yields have settled, now it's been
[08:25.520 --> 08:30.040]  interesting to see pretty much if we hold this daily range, the past two days will be
[08:30.040 --> 08:35.000]  among the least the 10 years moved this year. So it's not only the fact that yields are
[08:35.000 --> 08:39.280]  kind of settling into the middle of what could be a 20 basis point range, if you know, tended
[08:39.280 --> 08:43.760]  to trade in ranges of about that and then have a crazy move in one direction or another.
[08:43.760 --> 08:46.880]  They're also kind of calming down on the internet. At the end of the day though, are we just
[08:46.880 --> 08:51.960]  headed towards lower yields? Given that we are seeing these global growth forecasts and
[08:51.960 --> 08:56.440]  the impact that the virus is having not only in the Chinese economy, but fields are rising,
[08:56.440 --> 09:00.760]  but we're still at 162. Yeah, exactly. This isn't, these aren't necessarily high-burden
[09:00.760 --> 09:04.840]  costs. By the stretch of the imagination, no one's expecting them to get materially
[09:04.840 --> 09:08.840]  higher. However, you know, there is a sense and even as Powell does strike, you know,
[09:08.840 --> 09:13.280]  kind of a dovish note while still signaling confidence in the U.S., they definitely, as
[09:13.280 --> 09:17.200]  Mike said, they're not in no hurry to lower rates. We got a signal overnight, I believe
[09:17.200 --> 09:22.720]  from the RBNZ, that kind of even they are not leaping on the train to necessarily cut
[09:22.720 --> 09:28.120]  rates in the face of the coronavirus. So the central bank response or the market kind of
[09:28.120 --> 09:32.400]  interpretation of how aggressively central banks will respond to that has probably been
[09:32.400 --> 09:37.160]  a little over overstated so far. So that as a driver of lower yields, probably not, but
[09:37.160 --> 09:41.920]  just the fact that growth and inflation haven't really picked up in years and aren't expected
[09:41.920 --> 09:45.400]  to, that's probably the more enduring trend.
[09:45.400 --> 09:50.320]  And then where does the correlation between equities and fixed income fit in here, Luke?
[09:50.320 --> 09:54.560]  So that's been interesting to watch that release snap back in Cameron Christ did a good job
[09:54.560 --> 09:58.920]  of highlighting that this morning on the MLive blog. We have essentially now for a while,
[09:58.920 --> 10:04.680]  early in January, stocks and bond yields were fairly negatively correlated. Their, you know,
[10:04.680 --> 10:09.600]  stock would manage to rise even when yields were falling and this was essentially a software
[10:09.600 --> 10:14.800]  to the moon trade, even as cyclicals were fading. Right now, it's kind of the situation
[10:14.800 --> 10:19.040]  has flipped back to what you might get a little more normal. Stocks rising, bond yields rising
[10:19.040 --> 10:23.480]  in tandem and that just, I think that shows that you get to a certain point in markets
[10:23.480 --> 10:28.000]  where you can't make the valuation excuse anymore or you can't say that falling yields
[10:28.000 --> 10:31.740]  are just always and everywhere a good thing for risk asset valuations because they were
[10:31.740 --> 10:35.860]  starting to really, really send a potentially negative signal about the growth outlook and
[10:35.860 --> 10:40.600]  now as yields rise, it's more having to do with some of the tail risk, whether rightly
[10:40.600 --> 10:44.840]  or wrongly based on how limited information we have at this juncture, kind of being ebbed
[10:44.840 --> 10:51.000]  away at. All right, Luke, Luke Hall, great to have you with us. Appreciate it. Coming
[10:51.000 --> 10:55.840]  up, lawmakers, Democratic and now Republican, are stepping up their efforts to fight climate
[10:55.840 --> 11:00.800]  change and addressing the nation's aging water systems as high on the to-do list. We'll discuss
[11:00.800 --> 11:05.840]  the evolving topic of water safety with professor and public health expert Kellogg Schwab. This
[11:05.840 --> 11:12.840]  is Bloomberg. Bloomberg Television brought to you by Principle Financial Group, committed
[11:14.480 --> 11:19.260]  to delivering specialized investment solutions to clients around the globe. Get to know us
[11:19.260 --> 11:24.840]  at Principle.com. Hi, I'm Barry Sloan with NewTek, your business solutions company. Does
[11:24.840 --> 11:30.620]  your business need money? Whether you need 10,000 or 10 million, you can count on NewTek,
[11:30.620 --> 11:34.960]  the nation's largest non-bank government guaranteed lender. NewTek can help your business
[11:34.960 --> 11:41.420]  expand and grow. With a simple phone interview, we can pre-qualify you in just 48 hours.
[11:41.420 --> 11:46.020]  And with rates as low as 6%, you can see why so many businesses turn to NewTek. To see
[11:46.020 --> 11:53.020]  how easy getting a loan can be, contact NewTek, your business solutions company, today.
[12:16.020 --> 12:24.020]  That belongs to me.
[12:47.020 --> 12:54.020]  Climate change is the defining issue of our time, so we've redefined how we cover it.
[12:55.460 --> 13:01.020]  With clear data and rigorous journalism, we rise to the scale of the challenge to reveal
[13:01.020 --> 13:08.020]  the breadth of possibility. We look at stories from every angle to provoke debate, spotlight
[13:08.220 --> 13:14.740]  solutions, and make sense of the greatest crisis of our generation. Bloomberg Green,
[13:14.740 --> 13:21.740]  solutions for a changing climate.
[13:23.740 --> 13:27.300]  This is Bloomberg Markets, I'm Shermian in New York.
[13:27.300 --> 13:32.140]  And I'm Amanda Lange 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 --> 13:53.740]  We're making a huge investment in clean drinking water infrastructure here. About a $400 million
[13:53.740 --> 13:57.420]  investment, no taxpayer dollars. We're using it from the settlement money we got from Exxon
[13:57.420 --> 14:01.420]  years ago. So we're doing it kind of taxpayer free and allowing those dollars to go at the
[14:01.420 --> 14:05.580]  very local level.
[14:05.580 --> 14:09.520]  For more, we welcome Kellogg Schwab, Professor of Water and Public Health at Johns Hopkins.
[14:09.520 --> 14:13.820]  He joins us from Baltimore. And Professor, it's so interesting to hear the Governor stress
[14:13.820 --> 14:19.820]  no tax dollars in a way that almost undermines the importance of the issue. Tax dollars could
[14:19.820 --> 14:25.620]  very well be directed to this. Are we missing the point or the importance 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 --> 14:35.500]  the most undervalued assets of American life. These climate change stressors, including
[14:35.500 --> 14:40.500]  extreme rain and drought, putting pressure on our existing water supplies, as well as
[14:40.500 --> 14:44.780]  in our aging drinking water and wastewater infrastructure that can affect public health
[14:44.780 --> 14:50.020]  and the business sector. So it's incredibly important that we engage together in finding
[14:50.020 --> 14:51.500]  these important solutions.
[14:51.500 --> 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 --> 15:10.620]  a staggering 240,000 water main breaks per year in the United States, costing an estimated
[15:10.620 --> 15:16.100]  $2.4 billion. That's just to repair the leaks. That doesn't have the important drivers of
[15:16.100 --> 15:22.140]  economic value of water. All of our sectors, not only households, but businesses, hospitals,
[15:22.140 --> 15:27.420]  even farming, rely on safe water. And we need to have that continued reliance and ability
[15:27.420 --> 15:34.260]  to have safe waters provided and adequate removal of waste to have a thriving economy.
[15:34.260 --> 15:37.380]  I think there's an understanding that from an infrastructure point of view, there's a
[15:37.380 --> 15:41.180]  mountain to climb here regardless, right? Across North America, we have aging infrastructure
[15:41.180 --> 15:46.260]  that needs upgrading. Are we doing that in a way that's thoughtful about climate change,
[15:46.260 --> 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 --> 16:08.840]  of dollars, but sadly they're underground. They're ignored. And with that ignoring, we've
[16:08.840 --> 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 --> 16:26.740]  and amount of drought, and that will add to this problem. But we have some solutions we
[16:26.740 --> 16:31.380]  can do. We can start figuring out better ways to appreciate the value of water, putting
[16:31.380 --> 16:36.500]  the appropriate costs into it, and conserving water. And water use is an important part
[16:36.500 --> 16:37.660]  of that.
[16:37.660 --> 16:41.260]  How would you assess the Trump administration's policy on this front?
[16:41.260 --> 16:47.140]  Again, at the government level, it's important to realize that these are decades-long challenges,
[16:47.140 --> 16:51.560]  and we also have to have solutions that are long-term, not short-term in there. So each
[16:51.560 --> 16:56.180]  administration has its own values and interests in there, but overall, the United States has
[16:56.180 --> 17:02.700]  built a very robust economy based, in many parts, on access to water and removal of waste.
[17:02.700 --> 17:08.340]  And those will continue to thrive and survive these permutations. That said, it is important
[17:08.340 --> 17:13.860]  to realize that there are federal regulations that allow us to drive both improving economic
[17:13.860 --> 17:20.200]  and public health sectors, and this is an important thing to continue to consider.
[17:20.200 --> 17:26.140]  Do you think that we are correctly or adequately addressing the fact that water is not an endlessly
[17:26.140 --> 17:29.820]  renewable resource? I mean, there are already, obviously, parts of the world, but certainly
[17:29.820 --> 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 --> 17:50.420]  and even Florida, are pushing water reuse. That's this idea that we can consider this
[17:50.420 --> 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 --> 18:08.580]  the country, we need to continue to drive innovation and innovative ways that will improve
[18:08.580 --> 18:14.500]  not only water availability, but the business sector's reduction of water use, and there
[18:14.500 --> 18:18.580]  is a market to be made in this. As we go forward, we have to be engaged in a way that can be
[18:18.580 --> 18:24.580]  proactive to produce high-quality water, still relying on basic public health principles.
[18:24.580 --> 18:30.220]  At the end of the day, it will all come down to cost, right? How much it would cost to
[18:30.220 --> 18:34.380]  actually make all of these improvements. Where would those funds come from?
[18:34.380 --> 18:38.740]  Yeah, that's a challenging question. What sadly happened is, over the decades, we've
[18:38.740 --> 18:43.660]  ignored the true value of water. We built these pipes hundreds of years ago, decades
[18:43.660 --> 18:48.220]  ago, and then we haven't valued what it means to maintain that high-quality water because
[18:48.220 --> 18:52.460]  the pipes are hidden underground. Now, raising water bills is an important part of that,
[18:52.460 --> 18:56.780]  but a tariff structure is important. We also need to consider that there's a business approach
[18:56.780 --> 19:00.980]  to this as well. At the government level, we do need to invest this. There's ideas of
[19:00.980 --> 19:06.720]  an infrastructure. You see the roads, you see the bridges, but within our pipe system,
[19:06.720 --> 19:11.380]  we have a need, and there's jobs to be made in this, to push forward the resources that
[19:11.380 --> 19:19.980]  allow us to have a thriving economy. The American Civil Engineer 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, $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 --> 19:43.180]  jobs could be provided by having the sector be part of that economic thriving building.
[19:43.180 --> 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 --> 20:08.340]  continues to spread. This is Bloomberg.
[20:08.340 --> 20:12.260]  Ten years ago, we started Legacy Box. If you're like us, you have a box of old
[20:12.260 --> 20:17.180]  videotapes, film reels, and photos just degrading away in your closet. Legacy Box saves these
[20:17.180 --> 20:22.540]  memories by professionally digitizing them on DVD, thumb drive, or the cloud. It's easy.
[20:22.540 --> 20:26.380]  Load Legacy Box with your media, and you'll get back your originals and new digitized
[20:26.380 --> 20:31.540]  copies. Legacy Box is simple and safe with over a half a million satisfied customers.
[20:31.540 --> 20:39.300]  Preserve your memories today. Visit LegacyBox.com and get 40% off. That's LegacyBox.com.
[20:39.300 --> 20:50.780]  Interactive Brokers pays 1.06% on idle cash in your brokerage account. Do you know what
[20:50.780 --> 21:00.940]  your broker pays? Most U.S. brokers offer nominal interest in their brokerage accounts.
[21:00.940 --> 21:05.740]  Give your account to interactive brokers and start earning interest.
[21:05.740 --> 21:15.780]  Okay. Bounce the trade idea off my firm. Same old lines. I mean, show me some technical
[21:15.780 --> 21:19.820]  indicators. Proprietary research, something. That's why I like Schwab. They help look out
[21:19.820 --> 21:24.780]  for your blind spots. Come on, Johnny. You got this, buddy. Speaking of blind spots.
[21:24.780 --> 21:29.700]  It's time to trade up. Schwab helps you see the full picture with powerful intel and trading
[21:29.700 --> 21:36.580]  specialists who get it. Plus, get commission-free online stock, ETF, and options trades. Schwab,
[21:36.580 --> 21:39.220]  the better place for traders.
[21:39.220 --> 21:44.060]  Commodity investing is more than buying gold and oil. From coffee and corn to cattle and
[21:44.060 --> 21:49.420]  natural gas, many sectors drive the commodity markets, and the Bloomberg Commodity Index
[21:49.420 --> 21:54.980]  covers them all. With exposure across 23 traded commodities, Bloomberg is the standard for
[21:54.980 --> 22:00.040]  diversification in commodity markets. With full transparency, measure and monitor your
[22:00.040 --> 22:04.660]  investment performance against the benchmark used by commodity professionals globally.
[22:04.660 --> 22:12.880]  More than gold and oil. The Bloomberg Commodity Index.
[22:12.880 --> 22:17.140]  This is Bloomberg Markets. I'm Amanda Lang in Toronto. And I'm Shevrayani in New York.
[22:17.140 --> 22:23.140]  GSMA is canceling the Mobile World Congress in Barcelona 2020 due to global concern over
[22:23.140 --> 22:28.540]  the coronavirus outbreak. GSMA CEO John Hoffman says the spread of the deadly virus makes
[22:28.540 --> 22:33.000]  it impossible to hold the event. For more, we welcome Mark Gurman of Bloomberg Technology
[22:33.000 --> 22:37.940]  from Los Angeles. Mark, so was this just inevitable given the number of companies that are already
[22:37.940 --> 22:42.780]  pulled out, including those carriers who are supposed to be the buyers at this trade show,
[22:42.780 --> 22:43.780]  right?
[22:43.780 --> 22:48.940]  Exactly. Inventable is the best way to explain it. We've been anticipating this for the past
[22:48.940 --> 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 in 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 --> 23:21.900]  calendar invites being canceled for meetings that were being set up. So this was bound
[23:21.900 --> 23:27.020]  to happen and for sure the right decision because they really had no other option. The
[23:27.020 --> 23:31.460]  other side of this, however, is the significant economic impact this is going to have on the
[23:31.460 --> 23:37.060]  city of Barcelona, which has been preparing to host this thing for several months now.
[23:37.060 --> 23:41.700]  Industry there, hotels, restaurants, different activities people would be engaging with from
[23:41.700 --> 23:46.100]  this conference, but also the budgets that were set aside by these companies in order
[23:46.100 --> 23:49.980]  to put on this conference and attend this conference. Now that all has to be worked
[23:49.980 --> 23:55.660]  out as well. So obviously there'll be some direct pain, as you know, to Barcelona, the
[23:55.660 --> 23:59.220]  conference organizers, maybe some savings on the part of the businesses that don't go.
[23:59.220 --> 24:04.140]  But what about some of the intangibles impacts here, Mark, of the collaborations that don't
[24:04.140 --> 24:07.740]  happen, the sales that don't get made, the ideas that don't get sparked? How do we measure
[24:07.740 --> 24:12.540]  any of that? Yeah, I mean, immediately the way to measure this is basically these are
[24:12.540 --> 24:17.220]  a bunch of business deals and meetings that would just not happen otherwise. But, you
[24:17.220 --> 24:21.620]  know, on the other side of the coin, it's 2020, right? What that means is a lot of these
[24:21.620 --> 24:25.700]  important meetings are likely to get rescheduled pretty quickly, whether that's via conference
[24:25.700 --> 24:31.900]  call or phone call or, or meetings elsewhere. The good news is, is travel and digital communication
[24:31.900 --> 24:36.680]  is so simple these days. So my wager would be if there was to be a super critical meeting
[24:36.680 --> 24:41.340]  between a company and a partner, it's going to happen anyways, one way or another. So
[24:41.340 --> 24:45.140]  I don't think the impact is that severe if you really sit down and think about it on
[24:45.140 --> 24:50.060]  that aspect. Mark Gurman, Bloomberg Technology, thank you very much for joining us with the
[24:50.060 --> 24:56.100]  latest on the cancellation of the Mobile World Congress in Barcelona. And Amanda, it was
[24:56.100 --> 25:01.500]  a great day to be Korean when I saw the Parasite made history at the Oscars this week. They
[25:01.500 --> 25:08.620]  won that coveted best picture award the first ever in the Oscars history given that it was
[25:08.620 --> 25:13.180]  a foreign language film, right? So it was really an amazing day, but it wasn't just
[25:13.180 --> 25:18.620]  Pong Joon-ho, the director they're celebrating was also a Korean hedge fund investing around
[25:18.620 --> 25:23.700]  $500,000 in the film. And remember, this only cost 11 million to make, but then it raked
[25:23.700 --> 25:32.260]  in 165 million. So given how what the type of reception that it's received, you can just
[25:32.260 --> 25:37.200]  imagine how well the hedge fund could do. And this GTV chart on the Bloomberg also showing
[25:37.200 --> 25:43.060]  you that a pattern on the washer of this film, they gained what, like 90% this week. Take
[25:43.060 --> 25:48.100]  a look at that. Amazing. Lots of people who had the right, the potential to help distribute
[25:48.100 --> 25:52.620]  this film and passed on it, of course, now kicking themselves. Sherry, it took Canadians
[25:52.620 --> 25:57.940]  about 22 hours to make a claim to this film. One of the actors, the guy that plays the
[25:57.940 --> 26:02.260]  son is actually a Korean Canadian. He spent some of his childhood here, went to university
[26:02.260 --> 26:08.860]  here. So we're, you know, we're claiming a piece of this too. We're both are. Remember
[26:08.860 --> 26:12.500]  Bloomberg users can interact with all the charts you see on the network. GTV Go is your
[26:12.500 --> 26:33.140]  function from Toronto and New York. This is Bloomberg.
[26:33.140 --> 26:58.220]  From roof to foundation, the damage to your home can be devastating from clogged gutters,
[26:58.220 --> 27:04.100]  leaking roofs and flooded basements. Protect your entire home with Leaf Filter. Leaf Filter's
[27:04.100 --> 27:08.740]  micro mesh screen is guaranteed to filter out everything except for water. It's protected
[27:08.740 --> 27:15.780]  my home. I love it. Call 833 Leaf Filter or go to getleaffilter.com for your free gutter
[27:15.780 --> 27:36.700]  inspection and estimate. Call or log on today and save 15%.
[27:36.700 --> 28:02.100]  When I lost my sight, my biggest fear was losing my independence. So I've spent my life
[28:02.100 --> 28:11.660]  developing technology to help the visually impaired. We built a guide that uses IBM Watson
[28:11.660 --> 28:20.660]  to help the blind. It is already working in cities like Tokyo. My dream is to help millions
[28:20.660 --> 28:26.660]  more people like me. Attention. The Centers for Medicare and Medicaid Services has officially
[28:26.660 --> 28:31.640]  authorized new benefits that Medicare Advantage plans may include to get the benefits you
[28:31.640 --> 28:34.580]  deserve. You can call the Medicare coverage helpline.
[28:34.580 --> 28:40.100]  Hi, I'm Joe Namath. If you're on Medicare, this is important information. I called the
[28:40.100 --> 28:45.260]  Medicare coverage helpline and they instantly looked up my coverage. In this one simple
[28:45.260 --> 28:51.180]  call they offered to enroll me in a plan that includes rides to medical appointments, private
[28:51.180 --> 28:58.740]  home aides, doctors and nurses visits by telephone, and even home delivered meals. Vision, hearing
[28:58.740 --> 29:05.940]  and prescription drug coverage all at no additional cost. Don't delay. Call to see if the new
[29:05.940 --> 29:11.900]  benefits are available in your area. Call the number on your screen now. It's free. Call
[29:11.900 --> 29:22.660]  1-800-775-9500. That's 1-800-775-9500 now. I'm Mark Crumpton with Bloomberg's First
[29:22.660 --> 29:27.820]  Word News. A global health official says it's quote, way too early to try to predict the
[29:27.820 --> 29:33.740]  beginning of the end of the virus outbreak that began in China. Dr. Mike Ryan spoke at
[29:33.740 --> 29:38.940]  a news conference today at World Health Organization headquarters in Geneva, but he added that
[29:38.940 --> 29:44.100]  it is reassuring that the number of daily cases appears to be stabilizing. That's due
[29:44.100 --> 29:50.020]  mainly to China's huge public health operation, which has placed 60 million people under a
[29:50.020 --> 29:55.340]  lockdown. Former Massachusetts Governor Deval Patrick has, drums after Patrick, failed to
[29:55.340 --> 30:00.660]  secure 1% of the vote in the New Hampshire primary. He entered the democratic race just
[30:00.660 --> 30:05.220]  three months across the country, focusing some of his energy on South Carolina, where
[30:05.220 --> 30:09.920]  he hoped to cut into Joe Biden's support among African Americans. But his campaign never
[30:09.920 --> 30:15.900]  caught fire and he didn't qualify for any of the presidential debates. House Republicans
[30:15.900 --> 30:20.900]  boycotted an intelligence committee hearing today as hard feelings remain following President
[30:20.900 --> 30:26.140]  Trump's impeachment. Congressman Devin Nunes, the panel's ranking Republican, complained
[30:26.140 --> 30:30.620]  in a letter to Intelligence Chairman Adam Schiff that under his leadership, the committee
[30:30.620 --> 30:55.240]  quote...