June 10, 2025 • 23 mins
Watch Alix and Paul LIVE every day on YouTube: http://bit.ly/3vTiACF.
Bloomberg Intelligence hosted by Paul Sweeney and Alix Steel
-Sarah McGregor, Bloomberg Managing Editor of the National Team, discusses the latest with the LA protests. The Trump administration has mobilized 700 Marines to join thousands of National Guard troops in Los Angeles to respond to anti-deportation protests, escalating tensions with Democratic leaders.
-Sam Fazeli, Bloomberg Intelligence, Director of Research for Global Industries and Senior Pharmaceuticals, discusses the Department of Health and Human Services dismissing all 17 members of the Advisory Committee on Immunization Practices (ACIP), a key scientific panel that advises the US government on vaccine safety and policy.
-Joy Yang, Head of Index Product Management at MarketVector Indexes, discusses her outlook for the markets. A quiet session on the economic front saw traders driving the S&P 500 mildly up, with the gauge about 2% away from a record. Tesla Inc. led gains in megacaps.
-Chiling Tong-CEO of National ACE, discusses the effects of tariffs and trade policy on AAPI small business owners, ethnic business districts and their economic vulnerability.
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Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news. You're listening to the
Bloomberg Intelligence Podcast. Catch us live weekdays at ten am
Eastern on Apple, Cocklay and Android Auto with the Bloomberg
Business App. Listen on demand wherever you get your podcasts,
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Speaker 2 (00:23):
Let's go to LA. What's happening out there with the
unrest out there in Los Angeles? Sowry McGregor, Bloomberg managing
Eneger of the National Team joins us here. Sarah, can
you give us the latest reporting from Los Angeles? Understand?
President Trump has or authorized another two thousand troops in
addition to seven hundred marines.
Speaker 3 (00:45):
What's the status, yes, so on the ground now we're
told there were hundreds of National Guards yesterday. That's moved
up closer to two thousand, with as you said, another
two thousand authorized. On the ground, we are hearing that
the seven hundred marine are in LA right now. We're
not being told their positions, and from what we're seeing
from local reporting or what our own reporters are seeing
(01:07):
on the ground, they haven't actually been deployed yet, so
we're not seeing we're not seeing them. But I think
the key question that remains is sort of what are
their marching orders, who who are they reporting to, is
their coordination with local law enforcement, and sort of how
will they react on the ground in terms of trying
to control potential protesters. We did see a fourth night
of a sort of localized protests in Los Angeles, and again,
(01:29):
these aren't massive protests in some ways. It's you know,
vandals looting shops and obviously interacting with security forces on
the ground. But you know, these aren't aren't massive protests
yet that we're seeing in LA.
Speaker 4 (01:41):
Well, that's exactly what I wanted you to paint a
picture of because always when reporting, when you look at pictures,
you're always going to look at the worst pictures, right,
because that's what we do as a media culture. What's
it really like, how peaceful? Where are the breakouts of stress?
What does the unrest actually look like?
Speaker 3 (02:01):
Even before this weekend, there were peaceful protests in downtell
at downtown LA other parts of the city, mostly people
focused on you know, immigration, anti deportation protesters, So you know,
this is something that is an unusual, people gathering to
sort of protest ice raids or Trump's immigration agenda. Of course,
the violence that we saw up take over the weekend
after a spate of raids in the area is what
(02:25):
sort of prompted this latest flare up. But that being said,
you know what we're seeing right now, you know, both
from our reporting and local local media, is that downtown La,
parts of South La, Compton, Paramount, and now Santa Anna,
which is an Orange County are seeing some of these
these protests. So you know, we're in Century City, our
office here at Bloomberg in the business district. You know
that's you wouldn't know anything that is happening. It's miles
(02:48):
away from some of these protests Santa Monica Beach areas,
so you know it is it's kind of you know,
shut down a highway over the weekend. Again, I don't
want to downplay the severity in some respects, but much
of the city, if you didn't turn on the news,
would not know this was happening.
Speaker 2 (03:04):
What's been the response from government officials in the state
of California.
Speaker 3 (03:09):
We saw quite the war of words between Newsom and
Trump yesterday. We saw Trump suggesting, you know, he wouldn't
mind if Newsom was arrested. Of course, there's no grounds.
Speaker 5 (03:19):
Grounds for that.
Speaker 3 (03:20):
But you know, kind of back and forth. Newsom posted
photos of some of the National Guards sleeping on the
floor with their backpacks, saying, you know, they're not being
treated even properly. They're not getting food or a place
to rest their heads. So, you know, there's a little
bit of theatrics going on with the war of words
playing out over social media, but at the same time,
there's some real issues at play, and I think, you know,
the escalation with the Marines yesterday is just another example
(03:43):
of how, you know, action is being followed up by
some of these words. And Trump in the past has
threatened federal funding to the state of California. So that's
one of the big things that we're watching for. At
what point will this escalate, you know, potentially to more
of a militarization, but also potentially funding cuts or other
you know, other things.
Speaker 2 (04:01):
Okay, Sarah, thank you so much for joining us. Appreciate
your reporting from Los Angeles. Sara McGregor, National Team Managing
editor from Bloomberg News, joining us from La via zoom.
Speaker 1 (04:11):
You're listening to the Bloomberg Intelligence podcast. Catch us live
weekdays at ten am Eastern on Apple, Coarclay and Android
Auto with the Bloomberg Business App. Listen on demand wherever
you get your podcasts, or watch us live on YouTube.
Speaker 4 (04:25):
We are covering all the news for your business, economics, finance, politics.
There are a lens of our Bloomberg Intelligence folks. They
cover two thousand companies and one hundred and thirty industries
around the world. The news that broke around the closing
bell yesterday was RFK Junior removing all members of CDC
Vaccine Advisory Panel. So what does that actually mean for us,
for the vaccinators and for countries and health and all
(04:48):
the things. So we go to Sam Pazzelli, Bloomberg Intelligence,
Director of Research for Global Industries and Senior Pharmaceuticals. So,
if you get rid of a vaccine advisory panel, like
what happens to vaccines?
Speaker 6 (04:59):
Yeah? So, Alex, this is Remember there's one group at
the FDA who decides whether to approve a vaccine or not.
So they do the or the analysis on the efficacy
and the side effect, profile, risk benefit, et cetera. And
then the ACIP, which normally meets three times a year,
was the group that decides or is the group because
it's not gone, it's just that these the current members
(05:21):
have been put aside and new ones are going to
be brought on. The ACIP decides how to do it,
how to take it, for what, who should take it?
Should it be, which is, you know what we've been
having those above sixty four, those above fifty, et cetera,
et cetera, with commobility without come mobility and how many times,
et cetera. That's the kind of thing The ACIP reviewed
(05:43):
and decided and gave guidance on that, and then insurance
companies went on the back of that.
Speaker 2 (05:47):
So, Sam, when you replace this entire panel, I don't
think it's ever been done before, But my senses, I
don't know how quickly they repopulate this panel. But is
there the risk that we see a slowdown maybe kind
of the distribution of medicine's new end existing.
Speaker 6 (06:05):
Well. So I wonder whether RFK Junior, the head of
the HHS, has already been thinking about this for the
past six months or say six months since since he
was confirmed, or even before that. It is possible that
he has people in mind for those for those roles.
It is also possible that and part of the reason
(06:27):
for that thinking is that the June ACAP meeting hasn't
been canceled. So I suspect in the next week or
so we'll be hearing the announcement of the people who
are going to be on the panel. Maybe we have
to wait until that day itself. I think it's twenty
sixth of June, if I'm not wrong, or there or thereabouts.
And so it suggests to me that the individuals have
(06:48):
been chosen. Now, the interesting thing is that you usually
get these folks picked and vetted, and it takes some time.
So that's why I'm wondering whether some decisions have all
be made. I don't know who would have made the decisions.
Maybe Secretary Kennedy has done it himself. I don't know
the details, but a group will be back, And of
(07:10):
course the question then is who are they, what type
of people are they and are they all of the
view that fits in with what Sexuary Kennedy has been
thinking or what? We'll have to wait and see.
Speaker 5 (07:24):
Okay, so let's play that fun one of game. Sam.
Speaker 4 (07:26):
If those that do come on do subscribe to views
over vaccines as Secretary Kennedy does, what does that wind
up looking like for vaccine stocks?
Speaker 6 (07:39):
Yeah, as you can tell, I think moderna is not
really particularly suffering today or biontic. I think the expectation
is that this group will still be an expert group,
will be able to decide how vaccines are administered and
how they're used. And I don't think there'll be a
particularly massive change to the already announced guidance and views
(08:01):
i e. Going forward and want place sebo control trials,
i e. We want these vaccines to be used in
particularly COVID, for example, in people with come mobidities, and
not just the entire population, et cetera, which has been
what had ended up being happening anyway in reality. So
I don't know whether there's going to be a massive shift.
Then again, we wait and see who's on this panel.
(08:24):
If they end up being non experts in the vaccine world,
then you start worring.
Speaker 2 (08:28):
So, Sam, as you talk at intraditional investors around the world,
what is their view towards biotech and big format given
maybe some of this changing landscape.
Speaker 6 (08:38):
Yeah, so biotics had a bit of a reprieve recently,
as you remember, a couple of weeks ago or so
ten days ago, we talked about some M and A
deals that came in some big licensing deal, et cetera.
So that has helped sentiment a bit, and I think
what the market is not ready for is a real
comeback on the most favored nation or anything to do
(08:59):
with the tariff some pharmaceuticals, because that's not gone away
or the other tariff conversation does not include pharmaceuticals, right,
So there is a risk that we've become a little
bit complacent maybe with regards to the sector as a
whole and what the administration would do, maybe because of
the walk backs of some of the tariff talk that
(09:22):
had happened with the other sectors, etc. I think there's
probably some of that happening. So fingers crossed, nothing shocking
or surprising comes out of either of those two fronts.
Speaker 4 (09:34):
Would we be thinking that there would be some exemptions
for some components for some diseases.
Speaker 6 (09:41):
Well, I think if there is going to be a tariff,
it has to be on the important drugs, right, because
then if you're a farmer company that produces sixty seventy
eighty percent of your product in the US already, then
you shouldn't feel an impact from that and you might
be able to then switch more manufacturing. But this is
what I've said before, you can't say to farmer companies
that the reason you should bring manufacturing here because this
(10:03):
is your biggest profit center, and then at the same time,
with MFN most favorite nation, try and erode that profit capability.
That's what I'm worried is one of the guiding principles
of the administration.
Speaker 5 (10:17):
Right, and that obviously has those repercussions.
Speaker 4 (10:19):
Hey, Sam, really great to check in with you. Sam
Bazzelli a Bloomberg Intelligence. He's director of research as well
senior pharmaceutical analysts.
Speaker 5 (10:25):
Thank you very much.
Speaker 1 (10:28):
You're listening to the Bloomberg Intelligence podcast. Catch us live
weekdays at ten am Eastern on Applecarplay and Android Auto
with the Bloomberg Business app. Listen on demand wherever you
get your podcasts, or watch us live on YouTube.
Speaker 4 (10:41):
All right, taking a look at the markets, talk about believing,
I mean it feels like a rally. I can say
that over the last few days it's stealth, it's not aggressive. Volumes,
a little mix, but we keep grinding our way higher.
Joyang is head of index product Management at market Vector's Indexes,
and she joins us now in our interactive of a
broker studio right here, at Bloomberg. So what does this
(11:03):
tell us is a strong conviction rally? Is this a
grind higher until we get bad news rally?
Speaker 5 (11:09):
How would you describe it?
Speaker 7 (11:10):
I think we're all waiting for the headline bombs to drop,
but I think investors should be cautious not to interpret
a bounds with bottom and you know, taking a perspective
year to date, develop markets, emerging markets are still up
fifteen to twenty percent compared to two percent, and we
(11:31):
have to look at the bond markets and what they're
telling us. You know, the yield curve is deepening, So
there's still concerns even if there are taf for agreements
around inflationary prices, around the US debt, around kind of
this backing away from US exceptionalism. So there's still a
lot of cautious risks out there that we need to process,
(11:55):
and we should have a broader perspective on a handshake
versus enforceable agreements, and you know the long term implications
of what's going on. So I think overall people probably
are adjusting to this new normal, which is you know,
we're going to have a lot of policy volatility as
(12:17):
well as well as geo political risks, So investors are
now stepping into you know, other alternative assets, and that's
why we're seeing bitcoin, you know, pretty much increasing all
time highs. We're seeing gold kind of like a stabilizing,
but we're seeing alternative gold such as silver, platinum, they're
reaching all time highs at the moment.
Speaker 2 (12:39):
So do I just buy ten your treasuries? Do I
just buy gold? Do I that's my version of hiding out,
or do I go to quality stocks have air quotes.
Speaker 7 (12:50):
Yeah, diversify away from you know, high tech growth stocks.
Look at quality, look at value, look at gold, but
look at you know, RelA to value to goal, which
is the silver, the platinums. Look at where policy shifts
will be more optimistic, which is around where earth metals around.
(13:14):
You know, those are the things that governments are focused
on and trying to create better regulation or more stimulus package.
Look at defense, and we're seeing regulatory clarity around crypto
markets also, so that's opening up a new acid class.
So really think about diversifying away from just your core holdings.
Speaker 4 (13:36):
I take a look at the VIX grinding its way lower,
but then you look at say the vics six months out,
you compare the two and volatility still expected to be
quite high on a relative basis six months out.
Speaker 5 (13:47):
What does that tell you?
Speaker 6 (13:49):
What?
Speaker 5 (13:50):
How does that change in asset allocation?
Speaker 7 (13:52):
I think people are really kind of the vix is
reflecting people stepping away and just kind of waiting around.
And we've seen kind of this breakdown and correlations between
equities and bonds, and we're seeing this changing volatility pattern
and crypto acids too. So Bitcoin has been stabilizing and
(14:15):
volatility coming down in volatility, whereas some of these stock
you know, whether you look at Nvidia or uh pallunteer,
those volatilities are going up. So I think investors have
to adjust to this new normal and to you know,
think about holding different types of asset classes as well as,
you know, diversifying away from kind of the traditional core
(14:40):
equity bond.
Speaker 2 (14:41):
What do you make of bitcoin? What's your crypto kind
of call? Your shop? How do you guys think about it?
Speaker 7 (14:46):
I mean crypto overall is you know, it's a very
broad asset class. Bitcoin definitely is maturing with institutional focus,
and we've also seen recently flows into THEEUM. So as investors,
diverse investors come into this. You know, this ecosystem. You're
(15:08):
going to see a change of what people are focusing on,
which is less of the speculative volatility and more of
the use case, whether it's store value or operating or
layer one systems. You know, they are ultimately going to
produce value and perform differently from equities and bonds that
(15:30):
may be subject to more of the macro risks that
we're seeing at play.
Speaker 4 (15:34):
Speaking of quickly Blackstone CEOs your sportsman was talking about
investing in Europe. Is the x US trade kind of
where you want to be?
Speaker 7 (15:45):
It's still a good trade given the.
Speaker 5 (15:47):
Valuation trade or investment, I guess so the better question.
Speaker 7 (15:51):
It's still you know, look at the relative evaluation. US
is still very expensive. There's definitely rest of the world
is push towards less reliance on US exceptionalism, you know,
providing more stimulus into their own national industries and military defense.
(16:12):
So that's going to increase growth opportunities abroad, and as
we become I guess more inner or protect our own industry,
you know, competition well broaden elsewhere.
Speaker 2 (16:29):
All right, Joey, thank you so much for joining us.
Speaker 5 (16:31):
Always appreciate you.
Speaker 2 (16:32):
Jo a young head of Index Product Management at Market
Vector Indexes Bloomberg INTERACTI Brokers Studio.
Speaker 1 (16:39):
You're listening to the Bloomberg Intelligence Podcast. Catch us live
weekdays at ten am Eastern on Apple Cocklay and Android
Auto with the Bloomberg Business App. Listen on demand wherever
you get your podcasts, or watch us live on YouTube.
Speaker 4 (16:53):
Happy Tuesday, everybody, Alex ste you here alongside Paul sw
We need. This is Bloomberg Intelligence Radio. We're broadcasting to
live from our Interactive Brokers. You're right here in midtown Manhattan.
Speaker 6 (17:02):
Well.
Speaker 5 (17:02):
June is Paride month.
Speaker 4 (17:04):
So over the next couple of weeks we're going to
highlight segments on topics related to a quality. And today
we're speaking with Chilean Tong CEO of National ACE, which
stands for the National Asian Pacific Islander American Chamber of
Commerce and Entrepreneurship. As she joins us now from Washington, DC,
it's a pleasure to spend this.
Speaker 5 (17:23):
Time with you. Thank you so much for joining us.
Speaker 4 (17:26):
What has been the tariff effect on Asian small businesses
so far? We heard from the nfi B that optimism increase,
but the taxes are still a main concern.
Speaker 8 (17:37):
Well, Paul, Alex, thank you so much for you care
about the Asian American business community issue. We know the
trade the landscape can be very tricky and we acknowledge
administration's efforts to negotiate a new trade agreements to deal
with a fair trade practice and set a pass to
open market ass for American export. Ever, with uncertainties around
(18:02):
the trade deals, business of all sides feel the pressure. Recently,
at the National AIDS Capital Health Day, we took about
sixty small business owner to meet with forty congressional office.
They all talk about how tariffs are affecting their business.
They are very worried about uncertainty, rising costs, and cancelation.
(18:26):
It is very important for them to share their experience
with policymaker to ensure trade policy support their needs. I
would like to share with you two stories from small
business owner from both importing and exporting. Mister Ty's chili
oil was popular after TikTok video had over one hundred
(18:48):
and twenty five thousand views and new tariffs had made
their key ingredients chili flicks from China about fifty six
percent more expensive and the glass shared a bottles one's
thirty four per cents each. Now it costs nearly about
four times as much, and the owner Lucky Wing, said
(19:09):
they picked a very specific bottle style on China and
invested in it early on. Not with these press jumps,
they cannot afford to use them anymore. Another story from exporterer.
Speaker 5 (19:23):
Yes, go ahead, Well, just what was.
Speaker 2 (19:24):
The response when you from some of the lawmakers when
you went down to speak with them. Were they sympathetic
to some of these small business owner concerns?
Speaker 7 (19:33):
Oh?
Speaker 8 (19:33):
Yes, absolutely. I think we talk with both Republican and
Democrat member of Congress and that's what they say. Share
the story, share the story with the administration, share the
storyigs member of Congress, and have the stakeholder. We have
about one hundred and thirty affiliate chambers partners or the country,
(19:54):
so we encouraging they also encourage them to share the story.
Let people know the reality.
Speaker 4 (20:01):
What are the barriers to federal support and to access
to capital from Asian small business owners?
Speaker 8 (20:09):
Well, for access to capital part, I think this is
a very very important. For the past few years since COVID,
we always deal with access to capital. We had a survey.
We had twenty twenty four restern funds for the past
since twenty twenty one we have a giving about a
(20:30):
ten million dollars grant. So for those applicants, what is
seven percent of applicants share that their main source of
capital for their business that come from personal funds and
only twenty one percent indicate loans and credit from traditional
financial institution. So therefore, when we talk to the federal
(20:52):
agency and also the administration, we really want them to
develop more a small business program and accessible funding and
grant program for a small business owner for example, like
a minority business defounder agency. They used to have a
capital readiness program then able to share and the technical
(21:13):
as system to support small business to get the funding.
But now they are kind of you know, eliminating that,
but hopefully they will get back soon.
Speaker 2 (21:24):
So what if you heard chilling from your small business
owners about the labor market here with the illegal migration
has effectively come to a halt in the southern border.
Are they seeing that in their businesses the more difficult
to hire people.
Speaker 8 (21:40):
Well, I think since COVID they had difficulty to hire people,
especially restaurant owners. They're always short of workers. But we
just feel Chinese Chinatown, like Chinatown small business owner, they
always have a way to demonstrate incredible ras aliens and
(22:01):
even for you're right, the label shortage and also other
things really a big concern.
Speaker 2 (22:07):
Chilling, thank you so much for joining us. Really appreciate
getting a few minutes of your time. Chilling Tongue, CEO
of the National ACE, which is a national association, our
national Asian Pacific Islander American Chamber of Commerce and Entrepreneurship.
So the tariffs having impact on all businesses we hear
not on the conference calls of all the corporations that
we talk to all the time, but perhaps even more
(22:30):
pronounced for the small business owner who doesn't may not
have obviouly the financial resources or the flexibility in their
business model to withstand higher taxes so or higher tariffs
on some of their input.
Speaker 5 (22:40):
I mean even JM.
Speaker 4 (22:41):
Smunkers, which is clearly not a small business, is having
a hard time with those increasing costs. Also increasing costs
in its coffee business, which is going to hurt profit
by about one dollar a share, So there is that
as well.
Speaker 1 (22:53):
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Bloomberg Intelligence Podcast. Catch us live weekdays at ten am
Eastern on Apple, Cocklay and Android Auto with the Bloomberg
Business App. Listen on demand wherever you get your podcasts,
or watch us live on YouTube.
Speaker 2 (00:23):
Let's go to LA. What's happening out there with the
unrest out there in Los Angeles? Sowry McGregor, Bloomberg managing
Eneger of the National Team joins us here. Sarah, can
you give us the latest reporting from Los Angeles? Understand?
President Trump has or authorized another two thousand troops in
addition to seven hundred marines.
Speaker 3 (00:45):
What's the status, yes, so on the ground now we're
told there were hundreds of National Guards yesterday. That's moved
up closer to two thousand, with as you said, another
two thousand authorized. On the ground, we are hearing that
the seven hundred marine are in LA right now. We're
not being told their positions, and from what we're seeing
from local reporting or what our own reporters are seeing
(01:07):
on the ground, they haven't actually been deployed yet, so
we're not seeing we're not seeing them. But I think
the key question that remains is sort of what are
their marching orders, who who are they reporting to, is
their coordination with local law enforcement, and sort of how
will they react on the ground in terms of trying
to control potential protesters. We did see a fourth night
of a sort of localized protests in Los Angeles, and again,
(01:29):
these aren't massive protests in some ways. It's you know,
vandals looting shops and obviously interacting with security forces on
the ground. But you know, these aren't aren't massive protests
yet that we're seeing in LA.
Speaker 4 (01:41):
Well, that's exactly what I wanted you to paint a
picture of because always when reporting, when you look at pictures,
you're always going to look at the worst pictures, right,
because that's what we do as a media culture. What's
it really like, how peaceful? Where are the breakouts of stress?
What does the unrest actually look like?
Speaker 3 (02:01):
Even before this weekend, there were peaceful protests in downtell
at downtown LA other parts of the city, mostly people
focused on you know, immigration, anti deportation protesters, So you know,
this is something that is an unusual, people gathering to
sort of protest ice raids or Trump's immigration agenda. Of course,
the violence that we saw up take over the weekend
after a spate of raids in the area is what
(02:25):
sort of prompted this latest flare up. But that being said,
you know what we're seeing right now, you know, both
from our reporting and local local media, is that downtown La,
parts of South La, Compton, Paramount, and now Santa Anna,
which is an Orange County are seeing some of these
these protests. So you know, we're in Century City, our
office here at Bloomberg in the business district. You know
that's you wouldn't know anything that is happening. It's miles
(02:48):
away from some of these protests Santa Monica Beach areas,
so you know it is it's kind of you know,
shut down a highway over the weekend. Again, I don't
want to downplay the severity in some respects, but much
of the city, if you didn't turn on the news,
would not know this was happening.
Speaker 2 (03:04):
What's been the response from government officials in the state
of California.
Speaker 3 (03:09):
We saw quite the war of words between Newsom and
Trump yesterday. We saw Trump suggesting, you know, he wouldn't
mind if Newsom was arrested. Of course, there's no grounds.
Speaker 5 (03:19):
Grounds for that.
Speaker 3 (03:20):
But you know, kind of back and forth. Newsom posted
photos of some of the National Guards sleeping on the
floor with their backpacks, saying, you know, they're not being
treated even properly. They're not getting food or a place
to rest their heads. So, you know, there's a little
bit of theatrics going on with the war of words
playing out over social media, but at the same time,
there's some real issues at play, and I think, you know,
the escalation with the Marines yesterday is just another example
(03:43):
of how, you know, action is being followed up by
some of these words. And Trump in the past has
threatened federal funding to the state of California. So that's
one of the big things that we're watching for. At
what point will this escalate, you know, potentially to more
of a militarization, but also potentially funding cuts or other
you know, other things.
Speaker 2 (04:01):
Okay, Sarah, thank you so much for joining us. Appreciate
your reporting from Los Angeles. Sara McGregor, National Team Managing
editor from Bloomberg News, joining us from La via zoom.
Speaker 1 (04:11):
You're listening to the Bloomberg Intelligence podcast. Catch us live
weekdays at ten am Eastern on Apple, Coarclay and Android
Auto with the Bloomberg Business App. Listen on demand wherever
you get your podcasts, or watch us live on YouTube.
Speaker 4 (04:25):
We are covering all the news for your business, economics, finance, politics.
There are a lens of our Bloomberg Intelligence folks. They
cover two thousand companies and one hundred and thirty industries
around the world. The news that broke around the closing
bell yesterday was RFK Junior removing all members of CDC
Vaccine Advisory Panel. So what does that actually mean for us,
for the vaccinators and for countries and health and all
(04:48):
the things. So we go to Sam Pazzelli, Bloomberg Intelligence,
Director of Research for Global Industries and Senior Pharmaceuticals. So,
if you get rid of a vaccine advisory panel, like
what happens to vaccines?
Speaker 6 (04:59):
Yeah? So, Alex, this is Remember there's one group at
the FDA who decides whether to approve a vaccine or not.
So they do the or the analysis on the efficacy
and the side effect, profile, risk benefit, et cetera. And
then the ACIP, which normally meets three times a year,
was the group that decides or is the group because
it's not gone, it's just that these the current members
(05:21):
have been put aside and new ones are going to
be brought on. The ACIP decides how to do it,
how to take it, for what, who should take it?
Should it be, which is, you know what we've been
having those above sixty four, those above fifty, et cetera,
et cetera, with commobility without come mobility and how many times,
et cetera. That's the kind of thing The ACIP reviewed
(05:43):
and decided and gave guidance on that, and then insurance
companies went on the back of that.
Speaker 2 (05:47):
So, Sam, when you replace this entire panel, I don't
think it's ever been done before, But my senses, I
don't know how quickly they repopulate this panel. But is
there the risk that we see a slowdown maybe kind
of the distribution of medicine's new end existing.
Speaker 6 (06:05):
Well. So I wonder whether RFK Junior, the head of
the HHS, has already been thinking about this for the
past six months or say six months since since he
was confirmed, or even before that. It is possible that
he has people in mind for those for those roles.
It is also possible that and part of the reason
(06:27):
for that thinking is that the June ACAP meeting hasn't
been canceled. So I suspect in the next week or
so we'll be hearing the announcement of the people who
are going to be on the panel. Maybe we have
to wait until that day itself. I think it's twenty
sixth of June, if I'm not wrong, or there or thereabouts.
And so it suggests to me that the individuals have
(06:48):
been chosen. Now, the interesting thing is that you usually
get these folks picked and vetted, and it takes some time.
So that's why I'm wondering whether some decisions have all
be made. I don't know who would have made the decisions.
Maybe Secretary Kennedy has done it himself. I don't know
the details, but a group will be back, And of
(07:10):
course the question then is who are they, what type
of people are they and are they all of the
view that fits in with what Sexuary Kennedy has been
thinking or what? We'll have to wait and see.
Speaker 5 (07:24):
Okay, so let's play that fun one of game. Sam.
Speaker 4 (07:26):
If those that do come on do subscribe to views
over vaccines as Secretary Kennedy does, what does that wind
up looking like for vaccine stocks?
Speaker 6 (07:39):
Yeah, as you can tell, I think moderna is not
really particularly suffering today or biontic. I think the expectation
is that this group will still be an expert group,
will be able to decide how vaccines are administered and
how they're used. And I don't think there'll be a
particularly massive change to the already announced guidance and views
(08:01):
i e. Going forward and want place sebo control trials,
i e. We want these vaccines to be used in
particularly COVID, for example, in people with come mobidities, and
not just the entire population, et cetera, which has been
what had ended up being happening anyway in reality. So
I don't know whether there's going to be a massive shift.
Then again, we wait and see who's on this panel.
(08:24):
If they end up being non experts in the vaccine world,
then you start worring.
Speaker 2 (08:28):
So, Sam, as you talk at intraditional investors around the world,
what is their view towards biotech and big format given
maybe some of this changing landscape.
Speaker 6 (08:38):
Yeah, so biotics had a bit of a reprieve recently,
as you remember, a couple of weeks ago or so
ten days ago, we talked about some M and A
deals that came in some big licensing deal, et cetera.
So that has helped sentiment a bit, and I think
what the market is not ready for is a real
comeback on the most favored nation or anything to do
(08:59):
with the tariff some pharmaceuticals, because that's not gone away
or the other tariff conversation does not include pharmaceuticals, right,
So there is a risk that we've become a little
bit complacent maybe with regards to the sector as a
whole and what the administration would do, maybe because of
the walk backs of some of the tariff talk that
(09:22):
had happened with the other sectors, etc. I think there's
probably some of that happening. So fingers crossed, nothing shocking
or surprising comes out of either of those two fronts.
Speaker 4 (09:34):
Would we be thinking that there would be some exemptions
for some components for some diseases.
Speaker 6 (09:41):
Well, I think if there is going to be a tariff,
it has to be on the important drugs, right, because
then if you're a farmer company that produces sixty seventy
eighty percent of your product in the US already, then
you shouldn't feel an impact from that and you might
be able to then switch more manufacturing. But this is
what I've said before, you can't say to farmer companies
that the reason you should bring manufacturing here because this
(10:03):
is your biggest profit center, and then at the same time,
with MFN most favorite nation, try and erode that profit capability.
That's what I'm worried is one of the guiding principles
of the administration.
Speaker 5 (10:17):
Right, and that obviously has those repercussions.
Speaker 4 (10:19):
Hey, Sam, really great to check in with you. Sam
Bazzelli a Bloomberg Intelligence. He's director of research as well
senior pharmaceutical analysts.
Speaker 5 (10:25):
Thank you very much.
Speaker 1 (10:28):
You're listening to the Bloomberg Intelligence podcast. Catch us live
weekdays at ten am Eastern on Applecarplay and Android Auto
with the Bloomberg Business app. Listen on demand wherever you
get your podcasts, or watch us live on YouTube.
Speaker 4 (10:41):
All right, taking a look at the markets, talk about believing,
I mean it feels like a rally. I can say
that over the last few days it's stealth, it's not aggressive. Volumes,
a little mix, but we keep grinding our way higher.
Joyang is head of index product Management at market Vector's Indexes,
and she joins us now in our interactive of a
broker studio right here, at Bloomberg. So what does this
(11:03):
tell us is a strong conviction rally? Is this a
grind higher until we get bad news rally?
Speaker 5 (11:09):
How would you describe it?
Speaker 7 (11:10):
I think we're all waiting for the headline bombs to drop,
but I think investors should be cautious not to interpret
a bounds with bottom and you know, taking a perspective
year to date, develop markets, emerging markets are still up
fifteen to twenty percent compared to two percent, and we
(11:31):
have to look at the bond markets and what they're
telling us. You know, the yield curve is deepening, So
there's still concerns even if there are taf for agreements
around inflationary prices, around the US debt, around kind of
this backing away from US exceptionalism. So there's still a
lot of cautious risks out there that we need to process,
(11:55):
and we should have a broader perspective on a handshake
versus enforceable agreements, and you know the long term implications
of what's going on. So I think overall people probably
are adjusting to this new normal, which is you know,
we're going to have a lot of policy volatility as
(12:17):
well as well as geo political risks, So investors are
now stepping into you know, other alternative assets, and that's
why we're seeing bitcoin, you know, pretty much increasing all
time highs. We're seeing gold kind of like a stabilizing,
but we're seeing alternative gold such as silver, platinum, they're
reaching all time highs at the moment.
Speaker 2 (12:39):
So do I just buy ten your treasuries? Do I
just buy gold? Do I that's my version of hiding out,
or do I go to quality stocks have air quotes.
Speaker 7 (12:50):
Yeah, diversify away from you know, high tech growth stocks.
Look at quality, look at value, look at gold, but
look at you know, RelA to value to goal, which
is the silver, the platinums. Look at where policy shifts
will be more optimistic, which is around where earth metals around.
(13:14):
You know, those are the things that governments are focused
on and trying to create better regulation or more stimulus package.
Look at defense, and we're seeing regulatory clarity around crypto
markets also, so that's opening up a new acid class.
So really think about diversifying away from just your core holdings.
Speaker 4 (13:36):
I take a look at the VIX grinding its way lower,
but then you look at say the vics six months out,
you compare the two and volatility still expected to be
quite high on a relative basis six months out.
Speaker 5 (13:47):
What does that tell you?
Speaker 6 (13:49):
What?
Speaker 5 (13:50):
How does that change in asset allocation?
Speaker 7 (13:52):
I think people are really kind of the vix is
reflecting people stepping away and just kind of waiting around.
And we've seen kind of this breakdown and correlations between
equities and bonds, and we're seeing this changing volatility pattern
and crypto acids too. So Bitcoin has been stabilizing and
(14:15):
volatility coming down in volatility, whereas some of these stock
you know, whether you look at Nvidia or uh pallunteer,
those volatilities are going up. So I think investors have
to adjust to this new normal and to you know,
think about holding different types of asset classes as well as,
you know, diversifying away from kind of the traditional core
(14:40):
equity bond.
Speaker 2 (14:41):
What do you make of bitcoin? What's your crypto kind
of call? Your shop? How do you guys think about it?
Speaker 7 (14:46):
I mean crypto overall is you know, it's a very
broad asset class. Bitcoin definitely is maturing with institutional focus,
and we've also seen recently flows into THEEUM. So as investors,
diverse investors come into this. You know, this ecosystem. You're
(15:08):
going to see a change of what people are focusing on,
which is less of the speculative volatility and more of
the use case, whether it's store value or operating or
layer one systems. You know, they are ultimately going to
produce value and perform differently from equities and bonds that
(15:30):
may be subject to more of the macro risks that
we're seeing at play.
Speaker 4 (15:34):
Speaking of quickly Blackstone CEOs your sportsman was talking about
investing in Europe. Is the x US trade kind of
where you want to be?
Speaker 7 (15:45):
It's still a good trade given the.
Speaker 5 (15:47):
Valuation trade or investment, I guess so the better question.
Speaker 7 (15:51):
It's still you know, look at the relative evaluation. US
is still very expensive. There's definitely rest of the world
is push towards less reliance on US exceptionalism, you know,
providing more stimulus into their own national industries and military defense.
(16:12):
So that's going to increase growth opportunities abroad, and as
we become I guess more inner or protect our own industry,
you know, competition well broaden elsewhere.
Speaker 2 (16:29):
All right, Joey, thank you so much for joining us.
Speaker 5 (16:31):
Always appreciate you.
Speaker 2 (16:32):
Jo a young head of Index Product Management at Market
Vector Indexes Bloomberg INTERACTI Brokers Studio.
Speaker 1 (16:39):
You're listening to the Bloomberg Intelligence Podcast. Catch us live
weekdays at ten am Eastern on Apple Cocklay and Android
Auto with the Bloomberg Business App. Listen on demand wherever
you get your podcasts, or watch us live on YouTube.
Speaker 4 (16:53):
Happy Tuesday, everybody, Alex ste you here alongside Paul sw
We need. This is Bloomberg Intelligence Radio. We're broadcasting to
live from our Interactive Brokers. You're right here in midtown Manhattan.
Speaker 6 (17:02):
Well.
Speaker 5 (17:02):
June is Paride month.
Speaker 4 (17:04):
So over the next couple of weeks we're going to
highlight segments on topics related to a quality. And today
we're speaking with Chilean Tong CEO of National ACE, which
stands for the National Asian Pacific Islander American Chamber of
Commerce and Entrepreneurship. As she joins us now from Washington, DC,
it's a pleasure to spend this.
Speaker 5 (17:23):
Time with you. Thank you so much for joining us.
Speaker 4 (17:26):
What has been the tariff effect on Asian small businesses
so far? We heard from the nfi B that optimism increase,
but the taxes are still a main concern.
Speaker 8 (17:37):
Well, Paul, Alex, thank you so much for you care
about the Asian American business community issue. We know the
trade the landscape can be very tricky and we acknowledge
administration's efforts to negotiate a new trade agreements to deal
with a fair trade practice and set a pass to
open market ass for American export. Ever, with uncertainties around
(18:02):
the trade deals, business of all sides feel the pressure. Recently,
at the National AIDS Capital Health Day, we took about
sixty small business owner to meet with forty congressional office.
They all talk about how tariffs are affecting their business.
They are very worried about uncertainty, rising costs, and cancelation.
(18:26):
It is very important for them to share their experience
with policymaker to ensure trade policy support their needs. I
would like to share with you two stories from small
business owner from both importing and exporting. Mister Ty's chili
oil was popular after TikTok video had over one hundred
(18:48):
and twenty five thousand views and new tariffs had made
their key ingredients chili flicks from China about fifty six
percent more expensive and the glass shared a bottles one's
thirty four per cents each. Now it costs nearly about
four times as much, and the owner Lucky Wing, said
(19:09):
they picked a very specific bottle style on China and
invested in it early on. Not with these press jumps,
they cannot afford to use them anymore. Another story from exporterer.
Speaker 5 (19:23):
Yes, go ahead, Well, just what was.
Speaker 2 (19:24):
The response when you from some of the lawmakers when
you went down to speak with them. Were they sympathetic
to some of these small business owner concerns?
Speaker 7 (19:33):
Oh?
Speaker 8 (19:33):
Yes, absolutely. I think we talk with both Republican and
Democrat member of Congress and that's what they say. Share
the story, share the story with the administration, share the
storyigs member of Congress, and have the stakeholder. We have
about one hundred and thirty affiliate chambers partners or the country,
(19:54):
so we encouraging they also encourage them to share the story.
Let people know the reality.
Speaker 4 (20:01):
What are the barriers to federal support and to access
to capital from Asian small business owners?
Speaker 8 (20:09):
Well, for access to capital part, I think this is
a very very important. For the past few years since COVID,
we always deal with access to capital. We had a survey.
We had twenty twenty four restern funds for the past
since twenty twenty one we have a giving about a
(20:30):
ten million dollars grant. So for those applicants, what is
seven percent of applicants share that their main source of
capital for their business that come from personal funds and
only twenty one percent indicate loans and credit from traditional
financial institution. So therefore, when we talk to the federal
(20:52):
agency and also the administration, we really want them to
develop more a small business program and accessible funding and
grant program for a small business owner for example, like
a minority business defounder agency. They used to have a
capital readiness program then able to share and the technical
(21:13):
as system to support small business to get the funding.
But now they are kind of you know, eliminating that,
but hopefully they will get back soon.
Speaker 2 (21:24):
So what if you heard chilling from your small business
owners about the labor market here with the illegal migration
has effectively come to a halt in the southern border.
Are they seeing that in their businesses the more difficult
to hire people.
Speaker 8 (21:40):
Well, I think since COVID they had difficulty to hire people,
especially restaurant owners. They're always short of workers. But we
just feel Chinese Chinatown, like Chinatown small business owner, they
always have a way to demonstrate incredible ras aliens and
(22:01):
even for you're right, the label shortage and also other
things really a big concern.
Speaker 2 (22:07):
Chilling, thank you so much for joining us. Really appreciate
getting a few minutes of your time. Chilling Tongue, CEO
of the National ACE, which is a national association, our
national Asian Pacific Islander American Chamber of Commerce and Entrepreneurship.
So the tariffs having impact on all businesses we hear
not on the conference calls of all the corporations that
we talk to all the time, but perhaps even more
(22:30):
pronounced for the small business owner who doesn't may not
have obviouly the financial resources or the flexibility in their
business model to withstand higher taxes so or higher tariffs
on some of their input.
Speaker 5 (22:40):
I mean even JM.
Speaker 4 (22:41):
Smunkers, which is clearly not a small business, is having
a hard time with those increasing costs. Also increasing costs
in its coffee business, which is going to hurt profit
by about one dollar a share, So there is that
as well.
Speaker 1 (22:53):
This is the Bloomberg Intelligence podcast, available on Apple, Spotify
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weekday ten am to noon Eastern on bloomberg dot com,
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