Detecting language using up to the first 30 seconds. Use `--language` to specify the language
Detected language: English
[00:00.000 --> 00:05.200]  received about 26% of the vote. South Bend, Indiana Mayor Pete Buttigieg was a
[00:05.200 --> 00:09.560]  close second followed by Minnesota Senator Amy Klobuchar. Massachusetts
[00:09.560 --> 00:13.760]  Senator Elizabeth Warren and former Vice President Joe Biden finished well
[00:13.760 --> 00:20.120]  behind that cruise ship that was barred from docking in four countries has found
[00:20.120 --> 00:25.280]  a place to disembark the more than 2,200 people on board. Operators of the
[00:25.280 --> 00:30.000]  Westerdam say the vessel will dock in Cambodia on Thursday. The ship was turned
[00:30.000 --> 00:34.940]  away by Thailand, Taiwan, Japan and the Philippines because of fears that those
[00:34.940 --> 00:39.520]  aboard could spread a virus that originated in China. Holland America
[00:39.520 --> 00:45.280]  Line says there are no confirmed cases on board the ship. In Germany the search
[00:45.280 --> 00:49.600]  to replace Angela Merkel as Chancellor is getting underway. Pressures growing
[00:49.600 --> 00:53.520]  among Germany's conservative factions to speed up the process to choose a
[00:53.520 --> 00:57.680]  candidate for the next election. Chancellor Merkel's heir apparent shook up
[00:57.680 --> 01:01.520]  German politics Monday by declaring she would step down as the governing
[01:01.520 --> 01:05.440]  party's leader. Huawei technologies of being able to tap into mobile phone
[01:05.440 --> 01:10.280]  networks. National Security Advisor Robert O'Brien says officials believe the
[01:10.280 --> 01:15.880]  Chinese company uses back doors designed for use by law enforcement. Huawei is
[01:15.880 --> 01:20.400]  rejecting the allegations. The Trump administration has been urging allies to
[01:20.400 --> 01:25.720]  bar Huawei from their networks. Global news 24 hours a day on air and on
[01:25.720 --> 01:30.800]  quick take by Bloomberg powered by more than 2,700 journalists and analysts in
[01:30.800 --> 01:50.800]  over 120 countries. I'm Mark Crumpton. This is Bloomberg.
[01:50.800 --> 01:56.520]  Live from Bloomberg World headquarters in New York and live in Toronto I'm Amanda
[01:56.520 --> 01:59.400]  lying. Welcome to Bloomberg markets. We're now joined by both our Bloomberg and
[01:59.400 --> 02:04.680]  our BNN Bloomberg audiences. Day two for Powell. The Fed share continues his
[02:04.680 --> 02:09.000]  testimony on Capitol Hill striking a dovish tone. What is remarks on the
[02:09.000 --> 02:13.120]  central bank's efforts to increase labor force participation could mean for
[02:13.120 --> 02:18.240]  rates and another day. Another record US stocks are in the green with the S&P 500
[02:18.240 --> 02:22.600]  and the Dow Jones industries climbing to all time highs. Treasury yields have
[02:22.600 --> 02:28.720]  advanced in lockstep crude climbs oil inches above $51 a barrel even as OPEC
[02:28.720 --> 02:35.600]  slashes its forecast for global demand and US inventories were above estimates.
[02:35.960 --> 02:39.120]  Let's get you started with a quick check of our markets are trading in the
[02:39.120 --> 02:43.240]  afternoon session. We are seeing risk on sentiment with US stocks at a record
[02:43.240 --> 02:48.400]  high. Treasury yields also rising at the same time. We are seeing the S&P 500
[02:48.400 --> 02:53.200]  being led higher by consumer discretionary and energy stocks. Interesting oil is
[02:53.200 --> 02:57.520]  still above $51 a barrel despite the fact that OPEC came out and slashed their
[02:57.520 --> 03:01.960]  forecast for global demand this year. Not to mention that US inventories are
[03:01.960 --> 03:05.200]  higher than expected came in higher than expected. We're seeing the Dow
[03:05.200 --> 03:07.880]  gaining seven tenths of one percent. Of course we're seeing a little bit more
[03:07.880 --> 03:12.600]  optimism given that we are seeing the spread of the coronavirus slowing down
[03:12.600 --> 03:16.880]  in fact when it came to Hubei province the epicenter of the outbreak. We saw
[03:16.880 --> 03:22.040]  the lowest number of new cases this month. Still worth mentioning that
[03:22.040 --> 03:25.720]  there's uncertainty out there. Of course the virus death toll has topped 11
[03:25.720 --> 03:29.760]  hundred already. Not to mention that we're seeing this deep slump in this in
[03:29.760 --> 03:33.440]  industrial production continuing in Europe. So take a look at this chart
[03:33.440 --> 03:38.080]  because if you want to hedge amid this environment the yen might be a better
[03:38.080 --> 03:42.600]  option than gold. At least it would be a cheaper option. You're seeing the skew
[03:42.840 --> 03:47.520]  on the yen against the US dollar which shows bullish call options against
[03:47.520 --> 03:53.400]  puts that now a lower below that of gold. So Morgan Stanley saying that the
[03:53.400 --> 03:58.040]  yen could be a better bet when it comes to hedging tail risk at the moment
[03:58.040 --> 04:02.800]  Amanda. Yeah really interesting and I want to show you another chart inside
[04:02.800 --> 04:09.040]  the terminal here and this is the S&P 500 its valuation relative to its 20 day
[04:09.040 --> 04:13.520]  moving average. We're now seeing it at the highest level that it has seen in
[04:13.720 --> 04:17.760]  200 day moving average for pardon me in two years. It's about an 11 percent
[04:17.760 --> 04:21.560]  delta here. So just in terms of where things stand on a valuation basis
[04:21.560 --> 04:25.800]  getting lofty in terms of where it trades here. And we do have some breaking
[04:25.800 --> 04:29.240]  those even as we see kind of a calming down of concerns about the
[04:29.240 --> 04:33.120]  coronavirus. We learn that the Mobile World Congress has been cancelled by
[04:33.120 --> 04:36.560]  GSMA because of that coronavirus. Now there had been participants who had
[04:36.560 --> 04:39.920]  already said they would not attend the Mobile World Congress. And so perhaps
[04:40.160 --> 04:43.880]  this is just a simple reflection of the fact that that was going to be already
[04:43.880 --> 04:47.800]  affected by it. But that is the news that we can now bring to you that Mobile
[04:47.800 --> 04:52.120]  World Congress has been cancelled. And that virus of course was a topic for
[04:52.120 --> 04:56.000]  Fed Chair Jay Powell this week and his two days of testimony on Capitol Hill.
[04:56.440 --> 04:59.600]  Michael McKee Bloomberg International Economics and Policy Correspondent with
[04:59.600 --> 05:04.320]  us now with key takeaways. And today Mike the focus does seem to be on that
[05:04.320 --> 05:09.040]  wage and sort of the job picture. Just a big picture in terms of what you're
[05:09.040 --> 05:12.080]  hearing from Jay Powell. What's your biggest sort of takeaway from it all.
[05:12.800 --> 05:16.560]  Well you start with the coronavirus and the Fed's inability to really put any
[05:16.560 --> 05:20.160]  kind of numbers on what kind of damage it might do to the global or U.S.
[05:20.160 --> 05:24.560]  economies. Jay Powell telling the Senate Banking Committee today it should have a
[05:24.560 --> 05:28.200]  significant impact on the Chinese economy. But they don't really have good
[05:28.200 --> 05:31.600]  numbers yet. And of course if it affects the Chinese it will affect their
[05:31.600 --> 05:35.280]  trading partners. Powell said and there may be some impact on the United
[05:35.280 --> 05:39.000]  States. But it all depends on how long it lasts. That was the news in terms of
[05:39.240 --> 05:43.600]  any kind of thoughts of what the Fed might do in terms of interest rates
[05:43.600 --> 05:47.880]  going forward. Much of the rest of the time was spent as you said on sort of
[05:47.880 --> 05:52.920]  political topics. The idea of whether or not the Fed can do anything to
[05:52.960 --> 05:57.160]  increase employment beyond what it's already doing. And Powell basically said
[05:57.160 --> 06:00.440]  we're letting things run hot. We've learned our lesson inflation is not
[06:00.440 --> 06:04.760]  rising. We'll let it go and see how low it can go. But to really boost the
[06:04.760 --> 06:09.080]  economy you guys up on the day as the senators and representatives need to do
[06:09.080 --> 06:13.400]  more on the fiscal side. Yeah when it comes to that fiscal warning of course
[06:13.400 --> 06:17.000]  also coming on the back of President Trump's new budget which would really
[06:17.200 --> 06:20.760]  increase the deficit spending. What else did Powell have to say on that front.
[06:20.760 --> 06:24.200]  Well he was asked about it and he said you know he worries about the deficit
[06:24.200 --> 06:28.480]  right now. Even though it isn't a threat right now we're not seeing higher
[06:28.480 --> 06:31.840]  interest rates but he does want to see it brought down over the long run. And one
[06:31.840 --> 06:36.240]  reason is in the case of a recession the Fed might not have the tools it needs
[06:36.240 --> 06:40.360]  to completely fight it and they would want fiscal help as well. And with big
[06:40.360 --> 06:45.680]  deficits he's afraid that the Congress won't be able to respond. And of course
[06:45.680 --> 06:48.600]  all of this we have to keep in the context that there we don't yet know
[06:48.600 --> 06:53.600]  might the full extent of sort of damage done economically to business even in
[06:53.600 --> 06:57.600]  some ways to confidence although that may now be muted. How much do you think
[06:57.600 --> 07:00.640]  this is factoring in and we'll have to keep factoring into what the Fed is
[07:00.640 --> 07:04.480]  thinking as they watch data come in related to sort of global friction
[07:04.480 --> 07:08.320]  around Corona. Well they will watch the data come in even if you took the
[07:08.320 --> 07:12.280]  coronavirus out of the equation they would be watching to see if there were
[07:12.280 --> 07:16.800]  a positive reaction to the phase one trade deal and the idea that maybe the
[07:16.800 --> 07:20.800]  global economy had bottomed out. Now we got bad economic data out of Europe
[07:20.800 --> 07:25.520]  today that suggests maybe Powell was premature in saying that but they're
[07:25.520 --> 07:29.200]  going to be watching the data they're in no hurry to change rates one way or
[07:29.200 --> 07:33.040]  another. An interest rate increase is off the table but whether they would cut
[07:33.040 --> 07:36.880]  rates like Wall Street wants right now that's not on their table they're going
[07:36.880 --> 07:41.160]  to wait and see. Mike McKee thank you very much for the latest on Chair Powell's
[07:41.160 --> 07:45.160]  testimony today in Congress for more on the market reaction and the virus
[07:45.160 --> 07:50.920]  impact as well on the markets. Let's go to Luke Howell he's our cross acid
[07:50.920 --> 07:56.160]  reporter joining me now here in New York. So we are seeing a positive sentiment
[07:56.160 --> 07:59.680]  across the board stocks rising yields rising but how much of this has to do
[07:59.680 --> 08:05.680]  with anything on how positively Powell portrayed the economy and just virus
[08:05.680 --> 08:10.800]  concerns retreating? Probably a lot more on the latter there just you know in the
[08:10.800 --> 08:14.640]  absence of news flows surrounding the virus getting materially worse we're
[08:14.640 --> 08:19.640]  probably going to move away from the kind of the depths of recession fear type
[08:19.640 --> 08:23.800]  pricing we had in the 10-year yield and if you look at kind of the range that
[08:23.800 --> 08:27.280]  yields have settled then now it's been interesting to see pretty much if we hold
[08:27.280 --> 08:31.760]  this daily range the past two days will be among the least the 10 years moved
[08:31.760 --> 08:36.280]  this year so it's not only the fact that yields are kind of settling into the
[08:36.280 --> 08:39.600]  middle of what could be a 20 basis point range they've you know tended to trade
[08:39.600 --> 08:43.320]  in ranges of about that and then have a crazy move in one direction or another
[08:43.320 --> 08:46.320]  but they're also kind of calming down on the intro. At the end of the day though
[08:46.320 --> 08:50.440]  are we just headed towards lower yields given that we are seeing these global
[08:50.440 --> 08:55.200]  growth forecasts and the impact that the virus is having not only in the Chinese
[08:55.200 --> 08:58.880]  economy but yields are rising but we're still at 162. Yeah exactly like this
[08:58.880 --> 09:02.400]  isn't these aren't necessarily high burn costs by any stretch of the imagination
[09:02.400 --> 09:06.200]  no one's expecting them to get materially higher however you know there
[09:06.200 --> 09:10.120]  there is a sense and even as Powell does strike you know kind of a dovish note
[09:10.120 --> 09:13.880]  while still signaling confidence in the US they definitely as Mike said they're
[09:13.880 --> 09:17.440]  not in no hurry to to lower rates we got a signal overnight I believe from the
[09:17.440 --> 09:22.640]  Airbnb that kind of even they are not leaping on the train to necessarily cut
[09:22.640 --> 09:27.360]  rates in the face of the coronavirus so the central bank response or the market
[09:27.360 --> 09:31.240]  kind of interpretation of how aggressively central banks will respond to
[09:31.240 --> 09:35.200]  that has probably been a lover overstated so far so that as a driver of
[09:35.200 --> 09:39.520]  lower yields probably not but just the fact that growth and inflation haven't
[09:39.520 --> 09:43.160]  really picked up in years and aren't expected to that's probably the more
[09:43.160 --> 09:48.600]  enduring trend and then where does the correlation between equities and fixed
[09:48.600 --> 09:52.800]  income fit in here Luke so that's been interesting to watch that really snap
[09:52.800 --> 09:55.880]  back in Cameron Christ did a good job of highlighting that this morning on the
[09:55.880 --> 10:00.560]  end live blog we have essentially now for a while early in January stocks and
[10:00.560 --> 10:04.280]  bond yields were you know fairly negatively correlated there you know
[10:04.280 --> 10:08.480]  stock would manage to rise even when yields were falling and this was
[10:08.480 --> 10:12.560]  essentially a software to the moon trade even as cyclicals were fading or
[10:12.560 --> 10:16.280]  right now it's kind of the situation has flipped back to what you might get a
[10:16.280 --> 10:20.200]  little more normal stocks rising bond yields rising in tandem and that just I
[10:20.200 --> 10:24.000]  think that shows that you get to a certain point in markets or you can't
[10:24.000 --> 10:28.120]  make the valuation excuse anymore where you can't say that falling yields are
[10:28.120 --> 10:31.680]  just always and everywhere a good thing for risk asset valuations because they
[10:31.680 --> 10:35.000]  were starting to really really send a potentially negative signal about the
[10:35.000 --> 10:39.160]  growth outlook and now as yields rise it's more having to do with some of the
[10:39.160 --> 10:42.720]  tail risk whether you know rightly or wrongly based on how limited information
[10:42.720 --> 10:48.000]  we have at this juncture kind of being abbed away at all right Luke Luke Kyle
[10:48.000 --> 10:52.840]  a great to have you with us appreciate it coming up lawmakers Democratic and
[10:52.840 --> 10:56.480]  our Republican are stepping up their efforts to fight climate change and
[10:56.480 --> 11:00.520]  addressing the nation's aging water systems as high on the to-do list we'll
[11:00.520 --> 11:03.840]  discuss the evolving topic of water safety with professor and public health
[11:03.840 --> 11:08.280]  expert Kellogg Schwab this is Bloomberg
[11:10.400 --> 11:14.680]  Bloomberg television brought to you by principal financial group committed to
[11:14.680 --> 11:18.920]  delivering specialized investment solutions to clients around the globe get
[11:18.920 --> 11:23.480]  to know us at principal.com hi I'm very slow with new tech your business
[11:23.480 --> 11:28.520]  solutions company is your business need money whether you need 10,000 or 10
[11:28.520 --> 11:32.720]  million you can count on new tech the nation's largest non-bank government
[11:32.720 --> 11:37.280]  guaranteed lender new tech can help your business expand and grow with a
[11:37.280 --> 11:41.560]  simple phone interview we can pre qualify you in just 48 hours and with
[11:41.560 --> 11:46.080]  rates as low as 6% you could see why so many businesses turn to new tech to see
[11:46.080 --> 11:50.000]  how easy getting a loan can be contact new tech your business solutions company
[11:50.000 --> 12:03.280]  today Grubhub America's leader in food delivery just got better introducing
[12:03.280 --> 12:08.560]  perks millions of dollars in deals and free food nationwide download the
[12:08.560 --> 12:16.960]  Grubhub app today and get free delivery on your first order. Hi again that
[12:16.960 --> 12:45.920]  belongs to me
[12:47.960 --> 12:54.040]  climate change is the defining issue of our time so we've redefined how we
[12:54.040 --> 12:59.520]  cover it with clear data and rigorous journalism we rise to the scale of the
[12:59.520 --> 13:04.440]  challenge to reveal the breadth of possibility we look at stories from
[13:04.440 --> 13:10.520]  every angle to provoke debate spotlight solutions and make sense of the
[13:10.520 --> 13:15.760]  greatest crisis of our generation Bloomberg Green solutions for a
[13:15.760 --> 13:27.280]  changing climate. This is Bloomberg markets I'm show me on in New York and
[13:27.280 --> 13:30.960]  I'm Amanda Lang in Toronto house Republicans are unveiling their plan
[13:30.960 --> 13:35.160]  to combat climate change today in answer to Democrats who have dominated on the
[13:35.160 --> 13:38.640]  issue more public health officials are calling for water safety to be
[13:38.640 --> 13:42.400]  prioritized as part of the efforts it's already playing out at the state level
[13:42.400 --> 13:46.280]  New Hampshire governor Chris Sununu spoke with Bloomberg yesterday about his
[13:46.280 --> 13:51.400]  own plan. We're making a huge investment in clean drinking water
[13:51.400 --> 13:55.200]  infrastructure here about a 400 million dollar investment no taxpayer dollars
[13:55.200 --> 13:58.640]  we're using it from the settlement money we got from Exxon years ago so we're
[13:58.640 --> 14:01.480]  doing it kind of taxpayer free and allowing those dollars to go at the
[14:01.480 --> 14:08.040]  very local level. For more we welcome Kellogg Schwab professor of water and
[14:08.040 --> 14:11.840]  public health at Johns Hopkins he joins us from Baltimore and if
[14:11.840 --> 14:14.600]  professor it's so interesting to hear the governor's stress you know no tax
[14:14.600 --> 14:19.360]  dollars in a way that almost undermines the importance of the issue tax dollars
[14:19.360 --> 14:22.680]  that could very well be directed to this are we missing the point or the
[14:22.680 --> 14:27.920]  importance of water safety. Water safety is incredibly important a drink of
[14:27.920 --> 14:32.320]  clean safe water from the tap is one of the most undervalued assets of American
[14:32.320 --> 14:37.840]  life. These climate change stressors including extreme rain and drought putting
[14:37.840 --> 14:42.160]  pressure on our existing water supplies as well as in our aging drinking water
[14:42.160 --> 14:46.240]  and wastewater infrastructure that can affect public health and the business
[14:46.240 --> 14:50.200]  sector so it's incredibly important that we engage together in finding these
[14:50.200 --> 14:54.480]  important solutions. Professor how important is clean water for the economy
[14:54.480 --> 14:59.640]  and how important is it to shape it and frame it as an economic issue. It's
[14:59.640 --> 15:03.240]  incredibly important Deloitte just recently put out a report and when they
[15:03.240 --> 15:08.400]  said that there's a staggering 240,000 water main breaks per year in the United
[15:08.400 --> 15:13.600]  States costing an estimated estimated 2.4 billion dollars that's just to repair
[15:13.600 --> 15:17.480]  the leaks that doesn't have the important drivers of economic value of water.
[15:17.480 --> 15:22.800]  All of our sectors not only households but businesses hospitals even farming
[15:22.800 --> 15:27.560]  rely on safe water and we need to have that continued reliance and ability to
[15:27.560 --> 15:32.000]  have safe waters provided and adequate removal of our waste to have a thriving
[15:32.000 --> 15:36.720]  economy. I think there's an understanding that from an infrastructure point of
[15:36.720 --> 15:40.160]  view there's a mountain to climb here regardless right across North America we
[15:40.160 --> 15:43.960]  have aging infrastructure that needs upgrading are we doing that in a way
[15:43.960 --> 15:47.960]  that's thoughtful about climate change about the additional requirements we
[15:47.960 --> 15:52.880]  will face in the coming years. Yes climate change brings that unknown factor
[15:52.880 --> 15:57.440]  they're starting to understand we have an existing infrastructure of water or
[15:57.440 --> 16:01.600]  pipes that provide drinking water and wastewater removal there's hundreds of
[16:01.600 --> 16:04.920]  thousands of miles these pipes are worth trillions of dollars but sadly
[16:04.920 --> 16:09.400]  they're underground they're ignored and with that ignoring we've also not
[16:09.400 --> 16:13.400]  repaired or replaced them there's cost estimates anywhere from tens to hundreds
[16:13.400 --> 16:17.160]  of billions of dollars to maintain and repair them if we put on top of that
[16:17.160 --> 16:21.040]  climate change with these increased stresses we know that there will be
[16:21.040 --> 16:24.880]  variances the amount of rain and amount of drought and that will add to this
[16:24.880 --> 16:28.880]  problem but we have some solutions we can do we can start figuring out better
[16:28.880 --> 16:32.960]  ways to appreciate the value of water putting the appropriate costs into it
[16:32.960 --> 16:37.920]  and conserving water and water use is an important part of that. How would you
[16:37.920 --> 16:42.440]  assess the Trump administration's policy on this front? Again at the
[16:42.440 --> 16:45.920]  government level it's important to realize that these are decades-long
[16:45.920 --> 16:49.760]  challenges and we also have to have solutions that are long-term not
[16:49.760 --> 16:53.320]  short-term in there so each administration has its own values and
[16:53.320 --> 16:57.920]  interest in there but overall the United States has built a very robust economy
[16:57.920 --> 17:03.040]  based in many parts on access to water and removal of waste and those will
[17:03.040 --> 17:08.360]  continue to thrive and survive these permutations that said it is important
[17:08.360 --> 17:11.680]  to realize that there are federal regulations that allow us to drive
[17:11.680 --> 17:16.800]  both improving economic and public health sectors and this is an important
[17:16.800 --> 17:23.480]  thing to continue to consider. Do you think that we are correctly or adequately
[17:23.480 --> 17:27.800]  addressing the fact that water is not an endlessly renewable resource even there
[17:27.800 --> 17:31.200]  are already obviously parts of the world but certainly parts of America that
[17:31.200 --> 17:34.520]  are experiencing real water shortages and some of them are permanent in nature
[17:34.520 --> 17:38.440]  are we on top of that issue as a live fact that we could have to deal with in
[17:38.440 --> 17:43.480]  our lifetime? I don't think we're quite there yet obviously certain states
[17:43.480 --> 17:48.520]  California for example Arizona and even Florida are pushing water reuse that's
[17:48.520 --> 17:52.280]  this idea that we can consider this as not a one-off you can't just take water
[17:52.280 --> 17:56.120]  use it for one thing and discard it we have to consider part of our entire
[17:56.120 --> 17:59.840]  system and we can all do better here in the East Coast we've considered to have
[17:59.840 --> 18:03.960]  lots of water but we're underwater stress as well so across the country we
[18:03.960 --> 18:08.760]  need to continue to drive innovation and innovative ways that will improve not
[18:08.760 --> 18:13.680]  only water availability but the business sector's reduction of water use and
[18:13.680 --> 18:17.960]  there is a market to be made in this as we go forward we have to be engaged in
[18:17.960 --> 18:22.760]  a way that can be proactive to produce high-quality water still relying on
[18:22.760 --> 18:28.040]  basic public health principles. At the end of the day we'll all come down to
[18:28.040 --> 18:32.120]  cost right how much it would cost to actually make all of these improvements
[18:32.120 --> 18:36.680]  where would those funds come from? Yeah that's a challenging question what
[18:36.680 --> 18:40.840]  sadly happened is over the decades we've ignored the true value of water we built
[18:40.840 --> 18:45.800]  these pipes hundreds years ago decades ago and then we haven't valued what it
[18:45.800 --> 18:49.080]  means to maintain that high-quality water because the pipes are hidden in
[18:49.080 --> 18:52.920]  underground now raising water bills is an important part of that but a tariff
[18:52.920 --> 18:56.800]  structure is important we also need to consider that there's a business approach
[18:56.800 --> 19:00.760]  to this as well at the government level we do need to invest this there's ideas
[19:00.760 --> 19:05.400]  of an infrastructure you see the roads you see the the bridges but within our
[19:05.400 --> 19:10.160]  pipe system we have a need and there's jobs to be made in this to push forward
[19:10.160 --> 19:14.560]  the resources that allow us to have a thriving economy. The American
[19:14.560 --> 19:20.000]  City of civil sorry the American Civil Engineer Society has estimated that
[19:20.000 --> 19:24.320]  there's going to be a cost to the households of $46 billion over seven
[19:24.320 --> 19:30.480]  years and to the business sector $440 billion but there's also ways that we
[19:30.480 --> 19:35.920]  can have higher quality water that can improve both resources and provide jobs
[19:35.920 --> 19:40.600]  it's estimated that 1.1 million jobs could be provided by having the sector
[19:40.600 --> 19:45.480]  be part of that economic thriving. Professor thank you very much for joining us
[19:45.480 --> 19:48.880]  today Kellogg Schwab from the Johns Hopkins Bloomberg School of Public
[19:48.880 --> 19:51.680]  Health the Bloomberg School of Public Health is supported by Michael Bloomberg
[19:51.680 --> 19:56.080]  founder of Bloomberg LP and Bloomberg Philanthropies. Coming up we take a
[19:56.080 --> 19:59.920]  deeper look into the cancellation of the Mobile World Congress as the impact of
[19:59.920 --> 20:04.800]  the coronavirus continues to spread. This is Bloomberg.
[20:04.800 --> 20:12.160]  10 years ago we started Legacy Box. If you're like us you have a box of old
[20:12.160 --> 20:16.320]  videotapes film reels and photos just degrading away in your closet. Legacy
[20:16.320 --> 20:19.840]  Box saves these memories by professionally digitizing them on DVD,
[20:19.840 --> 20:24.360]  thumb drive or the cloud. It's easy. Load Legacy Box with your media and you get
[20:24.360 --> 20:28.800]  back your originals and new digitized copies. Legacy Box is simple and safe
[20:28.800 --> 20:32.880]  with over a half a million satisfied customers. Preserve your memories today.
[20:32.880 --> 20:38.280]  Visit legacybox.com and get 40% off. That's legacybox.com.
[20:38.280 --> 20:46.560]  Interactive Brokers pays 1.06% on idle cash in your brokerage account.
[20:49.440 --> 20:55.760]  Do you know what your broker pays? Most U.S. brokers offer nominal interest in
[20:55.760 --> 20:58.640]  their brokerage accounts.
[20:58.640 --> 21:06.120]  Move your account to Interactive Brokers and start earning interest.
[21:09.280 --> 21:15.240]  Okay. Bumps the trade idea off my firm. Same old lines. I mean show me some
[21:15.240 --> 21:18.880]  technical indicators, proprietary research, something. That's why I like Schwab.
[21:18.880 --> 21:22.480]  They help look out for you blind spots. Come on Johnny you got this buddy.
[21:22.480 --> 21:27.400]  Speaking of blind spots. It's time to trade up. Schwab helps you see the full
[21:27.400 --> 21:31.800]  picture with powerful Intel and trading specialists who get it. Plus get
[21:31.800 --> 21:37.120]  commission-free online stock, ETF and options trades. Schwab the better place
[21:37.120 --> 21:42.800]  for traders. Commodity investing is more than buying gold and oil. From coffee and
[21:42.800 --> 21:47.000]  corn to cattle and natural gas, many sectors drive the commodity markets.
[21:47.000 --> 21:52.240]  And the Bloomberg Commodity Index covers them all. With exposure across 23
[21:52.240 --> 21:55.880]  traded commodities, Bloomberg is the standard for diversification in
[21:55.880 --> 22:00.000]  commodity markets. With full transparency, measure and monitor your
[22:00.000 --> 22:03.240]  investment performance against the benchmark used by commodity professionals
[22:03.240 --> 22:09.320]  globally. More than gold and oil. The Bloomberg Commodity Index.
[22:11.840 --> 22:16.240]  This is Bloomberg Markets. I'm Amanda Lang in Toronto. And I'm Sherriani in New
[22:16.240 --> 22:21.880]  York. GSMA is canceling the Mobile World Congress in Barcelona 2020 due to
[22:21.880 --> 22:26.720]  global concern over the coronavirus outbreak. GSMA CEO John Hoffman says
[22:26.720 --> 22:30.920]  the spread of the deadly virus makes it impossible to hold the event. For more
[22:30.920 --> 22:34.440]  we welcome Mark Gurman of Bloomberg Technology from Los Angeles Mark. So was
[22:34.440 --> 22:38.320]  this just inevitable given the number of companies that already pulled out
[22:38.320 --> 22:41.960]  including those carriers who are supposed to be the buyers at this trade
[22:41.960 --> 22:47.200]  show, right? Exactly. Invitable is the best way to explain it. We've been
[22:47.200 --> 22:51.640]  anticipating this for the past few days. You've had basically every major
[22:51.640 --> 22:55.160]  player who would have been at the conference in Barcelona either pulling
[22:55.160 --> 23:00.920]  out or pressuring the GSMA, the parent company of this MWC conference to pull
[23:00.920 --> 23:06.920]  out. We saw Sprint in AT&T yesterday. Qualcomm was just awaiting this
[23:06.920 --> 23:10.440]  announcement to happen. They're one of the bigger players there. Some of the
[23:10.440 --> 23:14.040]  companies like Samsung and Huawei privately have scaled back which
[23:14.040 --> 23:19.280]  executives they were going to send. You saw calendar invites being canceled for
[23:19.280 --> 23:23.640]  meetings that were being set up. So this was bound to happen and for sure the
[23:23.640 --> 23:27.760]  right decision because they really had no other option. The other side of this
[23:27.760 --> 23:31.560]  however is the significant economic impact this is going to have on the
[23:31.560 --> 23:35.320]  city of Barcelona which has been preparing to host this thing for several
[23:35.320 --> 23:40.520]  months now. Industry there, hotels, restaurants, different activities people
[23:40.520 --> 23:44.080]  would be engaging with from this conference but also the budgets that
[23:44.080 --> 23:47.680]  were set aside by these companies in order to put on this conference and
[23:47.680 --> 23:53.120]  attend this conference. Now that all has to be worked out as well. So obviously
[23:53.120 --> 23:55.760]  there'll be some direct pain as you know to Barcelona, the conference
[23:55.760 --> 23:59.480]  organizers, maybe some savings on the part of the businesses that don't go but
[23:59.480 --> 24:03.800]  what about some of the intangibles impacts here Mark of the collaborations
[24:03.800 --> 24:06.840]  that don't happen, the sales that don't get made, the ideas that don't get
[24:06.840 --> 24:10.680]  sparked and how do we measure any of that? Yeah I mean immediately the way to
[24:10.680 --> 24:14.320]  measure this is basically these are a bunch of business deals and meetings
[24:14.320 --> 24:18.120]  that would just not happen otherwise but you know on the other side of the
[24:18.120 --> 24:22.720]  calling it's 2020 right? What that means is a lot of these important meetings are
[24:22.720 --> 24:26.160]  likely to get rescheduled pretty quickly whether that's be a conference call or
[24:26.160 --> 24:31.360]  phone call or or meetings elsewhere. The good news is is travel and digital
[24:31.360 --> 24:35.600]  communication is so simple these days so my wager would be if there was to be a
[24:35.600 --> 24:39.400]  super critical meeting between a company and a partner it's gonna happen
[24:39.400 --> 24:43.680]  anyways one way or another. So I don't think the impact is that severe if you
[24:43.680 --> 24:47.880]  really sit down and think about it on that aspect. Mark Gurman, Bloomberg
[24:47.880 --> 24:50.640]  Technology thank you very much for joining us with the latest on the
[24:50.640 --> 24:56.160]  cancellation of the Mobile World Congress in Barcelona and Amanda it was a
[24:56.160 --> 25:00.600]  great day to be Korean when I saw the parasite made history at the Oscars
[25:00.600 --> 25:06.320]  this week they won that coveted our best picture award the first ever in the
[25:06.320 --> 25:11.520]  Oscars history given that it was a foreign language film right so it was
[25:11.520 --> 25:14.760]  really an amazing day but it wasn't just Bong Joon-ho the director they're
[25:14.760 --> 25:19.920]  celebrating it was also a Korean hedge fund investing around $500,000 in the
[25:19.920 --> 25:23.840]  film and remember this only costs 11 million to make but then it raked in
[25:23.840 --> 25:31.720]  165 million so given how what the type of reception that it's received you can
[25:31.720 --> 25:36.400]  just imagine how well the hedge fund could do and this GTV chart on the
[25:36.400 --> 25:41.040]  Bloomberg also showing you that Paterson was sure of this film of they
[25:41.040 --> 25:45.840]  gained what like 90% this week take a look at that amazing lots of people who
[25:45.840 --> 25:49.440]  had the right the potential to help distribute this film and passed on it
[25:49.440 --> 25:54.800]  of course now kicking themselves Sherry it took Canadians about 22 hours to make
[25:54.800 --> 25:58.600]  a claim to this film one of the actors the the guy that plays the son is
[25:58.600 --> 26:01.920]  actually a Korean-Canadian he spent some of his childhood here went to
[26:01.920 --> 26:05.200]  university here so we know we're claiming a piece of this too we're both
[26:05.200 --> 26:11.200]  are remember Bloomberg users can interact with all the charts you see on
[26:11.200 --> 26:14.720]  the network GTV go is your function from Toronto and New York this is
[26:14.720 --> 26:38.640]  Bloomberg
[26:44.720 --> 26:58.440]  from roof to foundation the damage to your home can be devastating from clogged gutters leaking
[26:58.440 --> 27:04.760]  roofs and flooded basements protect your entire home with leaf filter leaf filters micro mesh
[27:04.760 --> 27:10.360]  screen is guaranteed to filter out everything except for water it's protected my home I love it
[27:10.360 --> 27:17.800]  call 833 leaf filter or go to getleaffilter.com for your free gutter inspection and estimate call
[27:17.800 --> 27:37.640]  or log on today and say 15%
[27:47.800 --> 28:01.480]  when I lost my sight my biggest fear was losing my independence so I've spent my
[28:01.480 --> 28:09.820]  life developing technology to help the visually impaired we built a guide that uses IBM Watson
[28:09.820 --> 28:19.280]  the library is in 40 meters to help the blind it is already working in cities like Tokyo my dream
[28:19.280 --> 28:25.480]  is to help millions more people like me attention the Centers for Medicare and Medicaid Services
[28:25.480 --> 28:30.880]  has officially authorized new benefits that Medicare Advantage plans may include to get
[28:30.880 --> 28:36.720]  the benefits you deserve you can call the Medicare coverage helpline hi I'm Joe Naiman if you're on
[28:36.720 --> 28:42.700]  Medicare this is important information I called the Medicare coverage helpline and they instantly
[28:42.700 --> 28:48.620]  looked up my coverage in this one simple call they offered to enroll me in a plan that includes
[28:48.620 --> 28:56.100]  rides to medical appointments private home aids doctors and nurses visits by telephone and even
[28:56.100 --> 29:03.980]  home delivered meals vision hearing and prescription drug coverage all at no additional cost don't
[29:03.980 --> 29:10.180]  delay call to see if the new benefits are available in your area call the number on your screen now
[29:10.180 --> 29:22.700]  it's free call 1-800-775-9500 that's 1-800-775-9500 now I'm Mark Crumpton with Bloomberg's first
[29:22.700 --> 29:28.660]  word news a global health official says it's quote way too early to try to predict the beginning of
[29:28.660 --> 29:35.020]  the end of the virus outbreak that began in China Dr. Mike Ryan spoke at a news conference today at
[29:35.020 --> 29:40.540]  World Health Organization headquarters in Geneva but he added that it is reassuring that the number
[29:40.540 --> 29:46.980]  of daily cases appears to be stabilizing that's due mainly to China's huge public health operation
[29:46.980 --> 29:53.860]  which has placed 60 million people under a lockdown former Massachusetts governor Deval Patrick has
[29:53.860 --> 29:59.580]  dropped after Patrick failed to secure 1% of the vote in the New Hampshire primary he entered the
[29:59.580 --> 30:04.100]  Democratic race just three months across the country focusing some of his energy on South
[30:04.100 --> 30:09.620]  Carolina where he hoped to cut into Joe Biden's support among African-Americans what his campaign
[30:09.620 --> 30:15.940]  never caught fire and he didn't qualify for any of the presidential debates House Republicans
[30:15.940 --> 30:20.940]  boycotted an intelligence committee hearing today as hard feelings remain following President
[30:20.940 --> 30:26.540]  Trump's impeachment congressman Devin Nunes the panel's ranking Republican complained in a letter
[30:26.540 --> 30:51.260]  to intelligence chairman Adam Schiff that under his leadership the committee quote as