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[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 adviser 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 --> 02:22.440]  the S&P 500 and the Dow Jones Industrious climbing to all time highs. Treasury yields
[02:22.440 --> 02:29.200]  have advanced in lockstep. Crude climbs. Oil inches above $51 a barrel. Even as OPEC slashes
[02:29.200 --> 02:33.800]  its forecast for global demand and U.S. inventories were above estimates.
[02:33.800 --> 02:40.180]  Let's get you started with a quick check of markets are trading in the afternoon session.
[02:40.180 --> 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 --> 03:21.000]  province, the epicenter of the outbreak, we saw the lowest number of new cases this month.
[03:21.000 --> 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 --> 04:02.800]  moment, Amanda. Yeah, really interesting. And I want to show you another chart inside
[04:02.800 --> 04:09.560]  the terminal here. And this is the S&P 500, its valuation relative to its 20-day moving
[04:09.560 --> 04:15.280]  average. We're now seeing it at the highest level that it has seen in 200-day moving average,
[04:15.280 --> 04:20.120]  pardon me, in two years. It's about an 11% delta here. So just in terms of where things
[04:20.120 --> 04:25.240]  stand on a valuation basis, getting lofty in terms of where it trades here. And we do
[04:25.240 --> 04:30.280]  have some breaking news. Even as we see kind of a calming down of concerns about the coronavirus,
[04:30.280 --> 04:34.800]  we learned that the Mobile World Congress has been canceled by GSMA because of that
[04:34.800 --> 04:37.800]  coronavirus. Now, there had been participants who had already said they would not attend
[04:37.800 --> 04:42.300]  the Mobile World Congress. And so perhaps this is just a simple reflection of the fact
[04:42.300 --> 04:47.120]  that it was going to be already affected by it. But that is the news that we can now bring
[04:47.120 --> 04:51.560]  to you, that Mobile World Congress has been canceled. And that virus, of course, was a
[04:51.560 --> 04:56.520]  topic for Fed Chair Jay Powell this week in his two days of testimony on Capitol Hill.
[04:56.520 --> 05:00.520]  Michael McKee, Bloomberg International Economics and Policy correspondent with us now with
[05:00.520 --> 05:06.360]  key takeaways. And today, Mike, the focus does seem to be on wage and sort of the job
[05:06.360 --> 05:10.560]  picture, just a big picture in terms of what you're hearing from Jay Powell. What's your
[05:10.560 --> 05:15.480]  biggest takeaway from it all? Well, you start with the coronavirus and the Fed's inability
[05:15.480 --> 05:19.800]  to really put any kind of numbers on what kind of damage it might do to the global or
[05:19.800 --> 05:25.080]  U.S. economies. Jay Powell telling the Senate Banking Committee today it should have a significant
[05:25.080 --> 05:29.680]  impact on the Chinese economy, but they don't really have good numbers yet. And of course,
[05:29.680 --> 05:33.600]  if it affects the Chinese, it will affect their trading partners, Powell said. And there
[05:33.600 --> 05:37.760]  may be some impact on the United States, but it all depends on how long it lasts. That
[05:37.760 --> 05:43.280]  was the news in terms of any kind of thoughts of what the Fed might do in terms of interest
[05:43.280 --> 05:48.320]  rates going forward. Much of the rest of the time was spent, as you said, on sort of political
[05:48.320 --> 05:54.720]  topics, the idea of whether or not the Fed can do anything to increase employment beyond
[05:54.720 --> 05:59.000]  what it's already doing. And Powell basically said we're letting things run hot. We've learned
[05:59.000 --> 06:03.840]  our lesson. Inflation's not rising. We'll let it go and see how low it can go. But to
[06:03.840 --> 06:08.800]  really boost the economy, you guys up on the dais, the senators and representatives need
[06:08.800 --> 06:13.440]  to do more on the fiscal side. Yeah, when it comes to that fiscal warning, of course,
[06:13.440 --> 06:17.680]  also coming on the back of President Trump's new budget, which would really increase the
[06:17.680 --> 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 --> 06:29.920]  a threat right now. We're not seeing higher interest rates, but he does want to see it
[06:29.920 --> 06:34.960]  brought down over the long run. And one reason is in the case of a recession, the Fed might
[06:34.960 --> 06:38.880]  not have the tools it needs to completely fight it. And they would want fiscal help
[06:38.880 --> 06:45.320]  as well. And with big deficits, he's afraid that the Congress won't be able to respond.
[06:45.320 --> 06:48.800]  And of course, all of this, we have to keep in the context that we don't yet know, Mike,
[06:48.800 --> 06:54.640]  the full extent of sort of damage done economically to business, even in some ways to confidence,
[06:54.640 --> 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 --> 07:13.120]  the Corona virus out of the equation, they would be watching to see if there were a positive
[07:13.120 --> 07:18.160]  reaction to the phase one trade deal and the idea that maybe the global economy had bottomed
[07:18.160 --> 07:23.200]  out. Now we got bad economic data out of Europe today that suggests maybe Powell was premature
[07:23.200 --> 07:28.720]  in saying that, but they're going to be watching the data. They're in no hurry to change rates
[07:28.720 --> 07:33.080]  one way or another. An interest rate increases off the table, but whether they would cut
[07:33.080 --> 07:37.120]  rates like Wall Street wants right now, that's not on their table. They're going to wait
[07:37.120 --> 07:41.960]  and see. Mike McKee, thank you very much for the latest on Chair Powell's testimony today
[07:41.960 --> 07:48.200]  in Congress. For more on the market reaction and the virus impact as well on the markets,
[07:48.200 --> 07:53.360]  let's go to Luke Howe. He's our cross-asset reporter joining me now here in New York. Luke,
[07:53.360 --> 07:58.520]  so we are seeing a positive sentiment across the board, stocks rising, yields rising, but
[07:58.520 --> 08:04.600]  how much of this has to do with anything on how positively Powell portrayed the economy
[08:04.600 --> 08:10.760]  and just virus concerns retreating? Probably a lot more on the ladder there. Just in the
[08:10.760 --> 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 --> 08:39.200]  kind of settling into the middle of what could be a 20 basis point range, if you don't tend
[08:39.200 --> 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 intermediate. At the end of the day, though, are we just
[08:46.880 --> 08:51.920]  headed towards lower yields, given that we are seeing these global growth forecasts and
[08:51.920 --> 08:55.960]  the impact that the virus is having not only in the Chinese economy, but the yields are
[08:55.960 --> 09:01.000]  rising, but we're still at 162. Yeah, exactly. These aren't necessarily high burn costs,
[09:01.000 --> 09:06.440]  funny stretch of the imagination. No one's expecting them to get materially higher. However,
[09:06.440 --> 09:11.200]  there is a sense, and even as Powell does strike kind of a dovish note while still signaling
[09:11.200 --> 09:15.960]  confidence in the U.S., they definitely, as Mike said, they're in no hurry to lower rates.
[09:15.960 --> 09:20.720]  We got a signal overnight, I believe, from the RBNZ that kind of even they are not leaping
[09:20.720 --> 09:26.000]  on the train to necessarily cut rates in the face of the coronavirus. So the central bank
[09:26.000 --> 09:31.080]  response or the market kind of interpretation of how aggressively central banks will respond
[09:31.080 --> 09:36.320]  to that has probably been a little over overstated so far. So that as a driver of lower yields,
[09:36.320 --> 09:40.600]  probably not, but just the fact that growth and inflation haven't really picked up in
[09:40.600 --> 09:45.960]  years and aren't expected to, that's probably the more enduring trend. And then where does
[09:45.960 --> 09:51.600]  the correlation between equities and fixed income fit in here, Luke? So that's been interesting
[09:51.600 --> 09:55.200]  to watch that release snap back in. Cameron Christ did a good job of highlighting that
[09:55.200 --> 10:00.360]  this morning on the MLive blog. We have essentially now for a while, early in January, stocks
[10:00.360 --> 10:07.360]  and bond yields were fairly negatively correlated. The stock would manage to rise even when yields
[10:07.360 --> 10:11.920]  were falling, and this was essentially a software to the moon trade, even as cyclicals were
[10:11.920 --> 10:16.440]  fading. Right now, it's kind of the situation has flipped back to what you might get a little
[10:16.440 --> 10:21.380]  more normal. Stocks rising, bond yields rising in tandem, and that just, I think that shows
[10:21.380 --> 10:25.400]  that you get to a certain point in markets where you can't make the valuation excuse
[10:25.400 --> 10:29.860]  anymore or you can't say that falling yields are just always and everywhere a good thing
[10:29.860 --> 10:33.660]  for risk asset valuations because they were starting to really, really send a potentially
[10:33.660 --> 10:37.560]  negative signal about the growth outlook. And now as yields rise, it's more having to
[10:37.560 --> 10:43.040]  do with some of the tail risk, whether rightly or wrongly, based on how limited information
[10:43.040 --> 10:48.480]  we have at this juncture, kind of being ebbed away at. All right, Luke, great to have you
[10:48.480 --> 10:54.240]  with us. Appreciate it. Coming up, lawmakers, Democratic and now Republican, are stepping
[10:54.240 --> 10:58.800]  up their efforts to fight climate change and addressing the nation's aging water systems
[10:58.800 --> 11:03.280]  as high on the to-do list. We'll discuss the evolving topic of water safety with Professor
[11:03.280 --> 11:10.280]  and public health expert Kellogg Schwab. This is Bloomberg.
[11:33.280 --> 11:40.280]  Thank you very much.
[12:03.280 --> 12:10.280]  Thank you.
[12:33.280 --> 12:40.280]  Climate change is the defining issue of our time, so we've redefined how we cover it.
[12:55.480 --> 13:01.040]  With clear data and rigorous journalism, we rise to the scale of the challenge to reveal
[13:01.040 --> 13:08.040]  the breadth of possibility. We look at stories from every angle to provoke debate, spotlight
[13:08.360 --> 13:15.360]  solutions and make sense of the greatest crisis of our generation. Bloomberg Green, solutions
[13:15.640 --> 13:20.640]  for a changing climate.
[13:20.640 --> 13:27.640]  This is Bloomberg Markets. I'm Shermian in New York. And I'm Amanda Lang in Toronto.
[13:27.640 --> 13:33.440]  House Republicans are unveiling their plan to combat climate change today in answer to
[13:33.440 --> 13:37.400]  Democrats who have dominated on the issue. More public health officials are calling for
[13:37.400 --> 13:41.880]  water safety to be prioritized as part of the efforts. It's already playing out at the
[13:41.880 --> 13:46.120]  state level. New Hampshire Governor Chris Sununu spoke with Bloomberg yesterday about
[13:46.120 --> 13:49.080]  his own plan.
[13:49.080 --> 13:53.720]  We're making a huge investment in clean drinking water infrastructure here. About a $400 million
[13:53.720 --> 13:57.440]  investment, no taxpayer dollars. We're using it from the settlement money we got from Exxon
[13:57.440 --> 14:01.440]  years ago. So we're doing it kind of taxpayer free and allowing those dollars to go at the
[14:01.440 --> 14:05.560]  very local level.
[14:05.560 --> 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 --> 14:19.000]  you know, no tax dollars in a way that almost undermines the importance of the issue. Tax
[14:19.000 --> 14:23.160]  dollars could very well be directed to this. Are we missing the point or the importance
[14:23.160 --> 14:25.600]  of water safety?
[14:25.600 --> 14:30.240]  Water safety is incredibly important. A drink of clean, safe water from the tap is one of
[14:30.240 --> 14:35.480]  the most undervalued assets of American life. These climate change stressors, including
[14:35.480 --> 14:40.480]  extreme rain and drought, are putting pressure on our existing water supplies as well as
[14:40.480 --> 14:45.200]  in our aging drinking water and wastewater infrastructure that can affect public health
[14:45.200 --> 14:50.000]  and the business sector. So it's incredibly important that we engage together in finding
[14:50.000 --> 14:51.440]  these important solutions.
[14:51.440 --> 14:56.160]  Professor, how important is clean water for the economy and how important is it to shape
[14:56.160 --> 14:59.600]  it and frame it as an economic issue?
[14:59.600 --> 15:03.880]  It's incredibly important. Deloitte just recently put out a report and they said that there's
[15:03.880 --> 15:10.640]  a staggering 240,000 water main breaks per year in the United States, costing an estimated
[15:10.640 --> 15:16.080]  $2.4 billion. That's just to repair the leaks. That doesn't have the important drivers of
[15:16.080 --> 15:22.120]  economic value of water. All of our sectors, not only households, but businesses, hospitals,
[15:22.120 --> 15:27.400]  even farming, rely on safe water. And we need to have that continued reliance and ability
[15:27.400 --> 15:34.240]  to have safe waters provided and adequate removal of waste to have a thriving economy.
[15:34.240 --> 15:37.400]  I think there's an understanding that from an infrastructure point of view, there's a
[15:37.400 --> 15:41.200]  mountain to climb here regardless, right? Across North America, we have aging infrastructure
[15:41.200 --> 15:46.280]  that needs upgrading. Are we doing that in a way that's thoughtful about climate change,
[15:46.280 --> 15:50.400]  about the additional requirements we will face in the coming years?
[15:50.400 --> 15:55.280]  Yes, climate change brings that unknown factor. They're starting to understand we have an
[15:55.280 --> 16:00.240]  existing infrastructure of water, our pipes that provide drinking water and wastewater
[16:00.240 --> 16:03.640]  removal. There's hundreds of thousands of miles of these pipes. They're worth trillions
[16:03.640 --> 16:08.840]  of dollars, but sadly they're underground. They're ignored. And with that ignoring, we've
[16:08.840 --> 16:13.360]  also not repaired or replaced them. There's cost estimates anywhere from tens to hundreds
[16:13.360 --> 16:17.920]  of billions of dollars to maintain and repair them. If we put on top of that climate change
[16:17.920 --> 16:22.640]  with these increased stresses, we know that there will be variances in the amount of rain
[16:22.640 --> 16:26.760]  and amount of drought, and that will add to this problem. But we have some solutions we
[16:26.760 --> 16:31.400]  can do. We can start figuring out better ways to appreciate the value of water, putting
[16:31.400 --> 16:36.520]  the appropriate costs into it, and conserving water. And water use is an important part
[16:36.520 --> 16:37.680]  of that.
[16:37.680 --> 16:41.240]  How would you assess the Trump administration's policy on this front?
[16:41.240 --> 16:46.920]  Again, at the government level, it's important to realize that these are decades-long challenges
[16:46.920 --> 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 --> 17:02.720]  built a very robust economy based, in many parts, on access to water and removal of waste.
[17:02.720 --> 17:08.360]  And those will continue to thrive and survive these permutations. That said, it is important
[17:08.360 --> 17:13.880]  to realize that there are federal regulations that allow us to drive both improving economic
[17:13.880 --> 17:20.200]  and public health sectors. And this is an important thing to continue to consider.
[17:20.200 --> 17:26.120]  Do you think that we are correctly or adequately addressing the fact that water is not an endlessly
[17:26.120 --> 17:30.160]  renewable resource? There are already, obviously, parts of the world, but certainly parts of
[17:30.160 --> 17:34.920]  America that are experiencing real water shortages and some of them are permanent in nature.
[17:34.920 --> 17:40.400]  Are we on top of that issue as a live fact that we could have to deal with in our lifetime?
[17:40.400 --> 17:45.720]  I don't think we're quite there yet. Obviously, certain states, California, for example, Arizona,
[17:45.720 --> 17:50.360]  and even Florida, are pushing water reuse. That's this idea that we can consider this
[17:50.360 --> 17:54.600]  as not a one-off. You can't just take water, use it for one thing, and discard it. We have
[17:54.600 --> 17:58.720]  to consider it part of our entire system. And we can all do better. Here in the East
[17:58.720 --> 18:03.160]  Coast, we've considered to have lots of water, but we're under water stress as well. So across
[18:03.160 --> 18:08.560]  the country, we need to continue to drive innovation and innovative ways that will improve
[18:08.560 --> 18:14.440]  not only water availability, but the business sector's reduction of water use. And there
[18:14.440 --> 18:18.560]  is a market to be made in this. As we go forward, we have to be engaged in a way that can be
[18:18.560 --> 18:26.520]  proactive to produce high-quality water, still relying on basic public health principles.
[18:26.520 --> 18:30.200]  At the end of the day, it will all come down to cost, right? How much it would cost to
[18:30.200 --> 18:34.320]  actually make all of these improvements. Where would those funds come from?
[18:34.320 --> 18:38.720]  Yeah, that's a challenging question. What sadly happened is over the decades, we've
[18:38.720 --> 18:43.640]  ignored the true value of water. We built these pipes hundreds of years ago, decades
[18:43.640 --> 18:48.200]  ago, and then we haven't valued what it means to maintain that high-quality water because
[18:48.200 --> 18:52.120]  the pipes are hidden in underground. Now, raising water bills is an important part of
[18:52.120 --> 18:56.360]  that, but a tariff structure is important. We also need to consider that there's a business
[18:56.360 --> 19:00.280]  approach to this as well. At the government level, we do need to invest this. There's
[19:00.280 --> 19:06.680]  ideas of an infrastructure. You see the roads, you see the bridges, but within our pipe system,
[19:06.680 --> 19:11.360]  we have a need, and there's jobs to be made in this, to push forward the resources that
[19:11.360 --> 19:20.000]  allow us to have a thriving economy. The American Civil Engineer Society has estimated that
[19:20.000 --> 19:24.960]  there's going to be a cost to the households of $46 billion over seven years, and to the
[19:24.960 --> 19:31.680]  business sector, $140 billion. But there's also ways that we can have higher-quality
[19:31.680 --> 19:38.620]  water that can improve both resources and provide jobs. It's estimated that 1.1 million
[19:38.620 --> 19:43.120]  jobs could be provided by having the sector be part of that economic thriving building.
[19:43.120 --> 19:47.840]  Professor, thank you very much for joining us today. Kellogg Schwab from the Johns Hopkins
[19:47.840 --> 19:51.520]  Bloomberg School of Public Health. The Bloomberg School of Public Health is supported by Michael
[19:51.520 --> 19:56.400]  Blumberg, founder of Bloomberg LP and Bloomberg Philanthropies. Coming up, we take a deeper
[19:56.400 --> 20:00.640]  look into the cancellation of the Mobile World Congress as the impact of the coronavirus
[20:00.640 --> 20:08.360]  continues to spread. This is Bloomberg.
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[22:12.880 --> 22:17.080]  This is Bloomberg Markets. I'm Amanda Lang in Toronto. And I'm Shevrayani in New York.
[22:17.080 --> 22:23.140]  GSMA is canceling the Mobile World Congress in Barcelona 2020 due to global concern over
[22:23.140 --> 22:28.520]  the coronavirus outbreak. GSMA CEO John Hoffman says the spread of the deadly virus makes
[22:28.520 --> 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 --> 22:42.720]  pulled out, including those carriers who are supposed to be the buyers at this trade show,
[22:42.720 --> 22:43.720]  right?
[22:43.720 --> 22:48.920]  Exactly. Inventable is the best way to explain it. We've been anticipating this for the past
[22:48.920 --> 22:53.560]  few days. You've had basically every major player who would have been at the conference
[22:53.560 --> 23:00.640]  in Barcelona either pulling out or pressuring the GSMA, the parent company of this MWC conference,
[23:00.640 --> 23:07.360]  to pull out. We saw a sprint in AT&T yesterday. Qualcomm was just awaiting this announcement
[23:07.360 --> 23:11.720]  to happen. They're one of the bigger players there. Some of the companies like Samsung
[23:11.720 --> 23:17.160]  and Huawei privately have scaled back which executives they were going to send. You saw
[23:17.160 --> 23:21.960]  calendar invites being canceled for meetings that were being set up. This was bound to
[23:21.960 --> 23:27.240]  happen and for sure the right decision because they really had no other option. The other
[23:27.240 --> 23:31.480]  side of this, however, is the significant economic impact this is going to have on the
[23:31.480 --> 23:37.080]  city of Barcelona, which has been preparing to host this thing for several months now.
[23:37.080 --> 23:41.720]  Industry there, hotels, restaurants, different activities people would be engaging with from
[23:41.720 --> 23:46.100]  this conference, but also the budgets that were set aside by these companies in order
[23:46.100 --> 23:49.960]  to put on this conference and attend this conference. Now that all has to be worked
[23:49.960 --> 23:52.280]  out as well.
[23:52.280 --> 23:56.360]  So obviously there'll be some direct pain as you know to Barcelona, the conference organizers,
[23:56.360 --> 24:00.040]  maybe some savings on the part of the businesses that don't go. But what about some of the
[24:00.040 --> 24:05.400]  intangibles impacts here, Mark, of the collaborations that don't happen, the sales that don't get
[24:05.400 --> 24:08.840]  made, the ideas that don't get sparked? How do we measure any of that?
[24:08.840 --> 24:13.440]  Yeah, I mean immediately the way to measure this is basically these are a bunch of business
[24:13.440 --> 24:18.600]  deals and meetings that would just not happen otherwise. But on the other side of the coin
[24:18.600 --> 24:23.160]  it's 2020, right? What that means is a lot of these important meetings are likely to
[24:23.160 --> 24:27.920]  get rescheduled pretty quickly, whether that's via conference call or phone call or meetings
[24:27.920 --> 24:33.440]  elsewhere. The good news is is travel and digital communication is so simple these days.
[24:33.440 --> 24:37.840]  So my wager would be if there was to be a super critical meeting between a company and
[24:37.840 --> 24:42.280]  a partner, it's going to happen anyways one way or another. So I don't think the impact
[24:42.280 --> 24:46.760]  is that severe if you really sit down and think about it on that aspect.
[24:46.760 --> 24:50.520]  Mark Gurman, Bloomberg Technology, thank you very much for joining us with the latest on
[24:50.520 --> 24:55.080]  the cancellation of the Mobile World Congress in Barcelona.
[24:55.080 --> 25:00.200]  And Amanda, it was a great day to be Korean when I saw the Parasite made history at the
[25:00.200 --> 25:06.720]  Oscars this week. They won that coveted Best Picture Award, the first ever in the Oscars
[25:06.720 --> 25:12.640]  history given that it was a foreign language film, right? So it was really an amazing day,
[25:12.640 --> 25:16.760]  but it wasn't just Bong Joon-ho, the director they're celebrating, it was also a Korean
[25:16.760 --> 25:22.240]  hedge fund investing around $500,000 in the film. And remember this only cost $11 million
[25:22.240 --> 25:31.240]  to make, but then it raked in $165 million. So given what the type of reception that it's
[25:31.240 --> 25:36.360]  received, you can just imagine how well the hedge fund could do. And this GTV chart on
[25:36.360 --> 25:41.680]  the Bloomberg also showing you that Patinson waster of this film, they gained what, like
[25:41.680 --> 25:44.200]  90% this week. Take a look at that.
[25:44.200 --> 25:49.440]  Amazing. Lots of people who had the potential to help distribute this film and passed on
[25:49.440 --> 25:55.160]  it, of course, now kicking themselves. Sherriett took Canadians about 22 hours to make a claim
[25:55.160 --> 26:00.440]  to this film. One of the actors, the guy that plays the son, is actually a Korean Canadian.
[26:00.440 --> 26:03.860]  He spent some of his childhood here, went to university here. So we're claiming a piece
[26:03.860 --> 26:05.000]  of this too.
[26:05.000 --> 26:08.880]  Remember both are.
[26:08.880 --> 26:12.200]  Remember Bloomberg users can interact with all the charts you see on the network. GTVGO
[26:12.200 --> 26:35.640]  is your function. From Toronto and New York, this is Bloomberg.
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[28:02.120 --> 28:22.320]  trying to figure out a way to get out of this situation and get out of this situation.
[28:22.320 --> 28:28.120]  Attention. The Centers for Medicare and Medicaid Services has officially authorized new benefits
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[29:21.080 --> 29:25.520]  I'm Mark Crumpton with Bloomberg's First Word News. A global health official says it's
[29:25.520 --> 29:30.840]  quote, way too early to try to predict the beginning of the end of the virus outbreak
[29:30.840 --> 29:36.400]  that began in China. Dr. Mike Ryan spoke at a news conference today at World Health Organization
[29:36.400 --> 29:41.920]  headquarters in Geneva, but he added that it is reassuring that the number of daily cases
[29:41.920 --> 29:47.380]  appears to be stabilizing. That's due mainly to China's huge public health operation, which
[29:47.380 --> 29:51.840]  has placed 60 million people under a lockdown.
[29:51.840 --> 29:56.080]  Former Massachusetts Governor Deval Patrick has, drums after Patrick, failed to secure
[29:56.080 --> 30:00.920]  1% of the vote in the New Hampshire primary. He entered the Democratic race just three
[30:00.920 --> 30:05.600]  months across the country, focusing some of his energy on South Carolina, where he hoped
[30:05.600 --> 30:10.240]  to cut into Joe Biden's support among African Americans. But his campaign never caught
[30:10.240 --> 30:15.120]  fire, and he didn't qualify for any of the presidential debates.
[30:15.120 --> 30:19.480]  House Republicans boycotted an Intelligence Committee hearing today, as hard feelings
[30:19.480 --> 30:24.720]  remain following President Trump's impeachment. Congressman Devin Nunes, the panel's ranking
[30:24.720 --> 30:30.280]  Republican, complained in a letter to Intelligence Chairman Adam Schiff that under his leadership,
[30:30.280 --> 30:37.280]  the committee, quote, as...