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[00:00.000 --> 00:05.560]  received about 26% of the vote. South Bend, Indiana, Mayor Pete Buttigieg was a close
[00:05.560 --> 00:11.240]  second followed by Minnesota Senator Amy Klobuchar. Massachusetts Senator Elizabeth Warren and
[00:11.240 --> 00:16.960]  former Vice President Joe Biden finished well behind.
[00:16.960 --> 00:21.640]  That cruise ship that was barred from docking in four countries has found a place to disembark
[00:21.640 --> 00:27.100]  the more than 2,200 people on board. Operators of the Westerdam say the vessel will dock
[00:27.100 --> 00:33.760]  in Cambodia on Thursday. The ship was turned away by Thailand, Taiwan, Japan and the Philippines
[00:33.760 --> 00:39.100]  because of fears that those aboard could spread a virus that originated in China. Holland
[00:39.100 --> 00:44.280]  America Line says there are no confirmed cases on board the ship.
[00:44.280 --> 00:49.080]  In Germany, the search to replace Angela Merkel as chancellor is getting underway. Pressure
[00:49.080 --> 00:54.240]  is growing among Germany's conservative factions to speed up the process to choose a candidate
[00:54.240 --> 00:59.120]  for the next election. Chancellor Merkel's heir apparent shook up German politics Monday
[00:59.120 --> 01:02.560]  by declaring she would step down as the governing party's leader.
[01:02.560 --> 01:07.440]  Huawei technologies of being able to tap into mobile phone networks. National Security
[01:07.440 --> 01:13.280]  Advisor Robert O'Brien says officials believe the Chinese company uses back doors designed
[01:13.280 --> 01:18.880]  for use by law enforcement. Huawei is rejecting the allegations. The Trump administration
[01:18.880 --> 01:23.440]  has been urging allies to bar Huawei from their networks.
[01:23.440 --> 01:29.920]  Global News 24 hours a day on air and on QuickTake by Bloomberg. Powered by more than 2,700 journalists
[01:29.920 --> 01:51.800]  and analysts in over 120 countries. I'm Mark Crumpton. This is Bloomberg.
[01:51.800 --> 01:58.360]  And live in Toronto, I'm Amanda Lang. Welcome to Bloomberg Markets. We're now joined by
[01:58.360 --> 02:02.640]  both our Bloomberg and our BNN Bloomberg audiences.
[02:02.640 --> 02:06.640]  Day two for Powell. The Fed Chair continues his testimony on Capitol Hill, striking a
[02:06.640 --> 02:12.360]  dovish tone. What his remarks on the central bank's efforts to increase labor force participation
[02:12.360 --> 02:17.200]  could mean for rates. And another day, another record. U.S. stocks are in the green with
[02:17.200 --> 02:22.400]  the S&P 500 and the Dow Jones industrials climbing to all-time highs. Treasury yields
[02:22.400 --> 02:29.160]  have advanced in lockstep. Crude climbs oil inches above $51 a barrel, even as OPEC slashes
[02:29.160 --> 02:34.520]  its forecast for global demand and U.S. inventories were above estimates.
[02:34.520 --> 02:40.140]  Let's get you started with a quick check of how markets are trading in the afternoon session.
[02:40.140 --> 02:45.080]  We are seeing risk on sentiment with U.S. stocks at a record high. Treasury yields also
[02:45.080 --> 02:50.880]  rising at the same time. We are seeing the S&P 500 being led higher by consumer discretionary
[02:50.880 --> 02:56.200]  and energy stocks. Interesting, oil is still above $51 a barrel despite the fact that OPEC
[02:56.200 --> 03:00.520]  came out and slashed their forecast for global demand this year. Not to mention that U.S.
[03:00.520 --> 03:04.880]  inventories are higher than expected, came in higher than expected. We're seeing the
[03:04.880 --> 03:09.000]  Dow gaining seven tenths of one percent. Of course, we're seeing a little bit more optimism
[03:09.000 --> 03:13.040]  given that we are seeing the spread of the coronavirus slowing down. In fact, when it
[03:13.040 --> 03:18.680]  came to Hubei Province, the epicenter of the outbreak, we saw the lowest number of new
[03:18.680 --> 03:24.080]  cases this month. Still worth mentioning that there's uncertainty out there. Of course,
[03:24.080 --> 03:28.240]  virus death toll has topped 1,100 already. Not to mention that we're seeing this deep
[03:28.240 --> 03:33.720]  slump in industrial production continuing in Europe. So take a look at this chart because
[03:33.720 --> 03:39.560]  if you want to hedge amid this environment, the yen might be a better option than gold.
[03:39.560 --> 03:44.600]  At least it would be a cheaper option. You're seeing the skew on the yen against the U.S.
[03:44.600 --> 03:52.120]  dollar which shows bullish call options against puts. That now lower below that of gold. So
[03:52.120 --> 03:57.200]  Morgan Stanley saying that the yen could be a better bet when it comes to hedging tail
[03:57.200 --> 04:02.760]  risk at the moment, Amanda. Really interesting. And I want to show you another chart inside
[04:02.760 --> 04:09.340]  the terminal here. And this is the S&P 500, its valuation relative to its 20-day moving
[04:09.340 --> 04:14.680]  average. We're now seeing it at the highest level that it has seen in 200-day moving average
[04:14.680 --> 04:19.840]  for, pardon me, in two years. It's about an 11% delta here. So just in terms of where
[04:19.840 --> 04:25.080]  things stand on a valuation basis, getting lofty in terms of where it trades here. And
[04:25.080 --> 04:29.080]  we do have some breaking news. Even as we see kind of a calming down of concerns about
[04:29.080 --> 04:34.460]  the coronavirus, we learned that the Mobile World Congress has been canceled by GSMA because
[04:34.460 --> 04:37.800]  of that coronavirus. Now there had been participants who had already said they would not attend
[04:37.800 --> 04:42.300]  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 --> 04:56.680]  topic for Fed Chair Jay Powell this week in his two days of testimony on Capitol Hill.
[04:56.680 --> 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 --> 05:19.780]  to really put any kind of numbers on what kind of damage it might do to the global or
[05:19.780 --> 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 --> 05:37.780]  may be some impact on the United States, but it all depends on how long it lasts. That
[05:37.780 --> 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 --> 05:54.760]  topics. The idea of whether or not the Fed can do anything to increase employment beyond
[05:54.760 --> 05:58.800]  what it's already doing. And Powell basically said, we're letting things run hot. We've
[05:58.800 --> 06:03.680]  learned our lesson. Inflation's not rising. We'll let it go and see how low it can go.
[06:03.680 --> 06:08.560]  But to really boost the economy, you guys up on the dais, the senators and representatives
[06:08.560 --> 06:13.440]  need 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 --> 06:21.680]  deficit spending. What else did Powell have to say on that front? Well, he was asked about
[06:21.680 --> 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 --> 06:34.980]  brought down over the long run. And one reason is in the case of a recession, the Fed might
[06:34.980 --> 06:38.900]  not have the tools it needs to completely fight it. And they would want fiscal help
[06:38.900 --> 06:45.360]  as well. And with big deficits, he's afraid that the Congress won't be able to respond.
[06:45.360 --> 06:48.880]  And of course, all of this we have to keep in the context that we don't yet know, Mike,
[06:48.880 --> 06:54.720]  the full extent of sort of damage done economically to business, even in some ways to confidence,
[06:54.720 --> 06:59.040]  although that may now be muted. How much do you think this is factoring in and will 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 --> 07:08.180]  of global friction around Corona? Well, they will watch the data come in. Even if you took
[07:08.180 --> 07:13.120]  the coronavirus 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 increase is 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 --> 07:41.640]  and see. Mike McKee, thank you very much. With the latest on Chair Powell's testimony
[07:41.640 --> 07:48.200]  today in Congress for more on the market reaction and the virus impact as well on the markets.
[07:48.200 --> 07:53.320]  Let's go to Luke Cowell. He's our cross asset reporter joining me now here in New York.
[07:53.320 --> 07:58.480]  So we are seeing a positive sentiment across the board, stocks rising, yields rising. But
[07:58.480 --> 08:04.600]  how much of this has to do with anything on how positively Powell portrayed the economy
[08:04.600 --> 08:10.740]  and just virus concerns retreating? Probably a lot more on the latter there. Just in the
[08:10.740 --> 08:15.280]  absence of news flow surrounding the virus getting materially worse, we're probably going
[08:15.280 --> 08:21.080]  to move away from the kind of the depths of recession fear type pricing we had in the
[08:21.080 --> 08:25.360]  10 year yield. And if you look at kind of the range that yields have settled now, it's
[08:25.360 --> 08:29.520]  been interesting to see pretty much if we hold this daily range, the past two days will
[08:29.520 --> 08:34.880]  be among the least the 10 years moved this year. So it's not only the fact that yields
[08:34.880 --> 08:39.240]  are kind of settling into the middle of what could be a 20 basis point range. They've tended
[08:39.240 --> 08:43.720]  to trade in ranges of about that and then have a crazy move in one direction or another.
[08:43.720 --> 08:46.480]  But they're also kind of coming down on the intro. At the end of the day, though, are
[08:46.480 --> 08:51.360]  we just headed towards lower yields, given that we are seeing these global growth forecasts
[08:51.360 --> 08:55.960]  and the impact that the virus is having not only in the Chinese economy, but those are
[08:55.960 --> 09:00.760]  rising. But we're still at 162. Yeah, exactly. This isn't these aren't necessarily high burn
[09:00.760 --> 09:05.200]  costs by any stretch of the imagination. No one's expecting them to get materially higher.
[09:05.200 --> 09:09.480]  However, you know, there is a sense and even as Powell does strike, you know, kind of a
[09:09.480 --> 09:13.840]  dovish note while still signaling confidence in the US. They definitely, as Mike said,
[09:13.840 --> 09:17.400]  they're not in no hurry to to lower rates. We got a signal overnight, I believe, from
[09:17.400 --> 09:23.280]  the Airbnb that kind of even they are not leaping on the train to necessarily cut rates
[09:23.280 --> 09:28.880]  in the face of the coronavirus. So the central bank response or the market kind of interpretation
[09:28.880 --> 09:33.480]  of how aggressively central banks will respond to that has probably been a little over overstated
[09:33.480 --> 09:38.480]  so far. So that as a driver of lower yields, probably not. But just the fact that growth
[09:38.480 --> 09:42.840]  and inflation haven't really picked up in years and aren't expected to. That's probably
[09:42.840 --> 09:48.560]  the more enduring trend. And then where does the correlation between equities and fixed
[09:48.560 --> 09:53.600]  income fit in here, Luke? So that's been interesting to watch that really snap back in. Cameron
[09:53.600 --> 09:57.600]  Christ did a good job of highlighting that this morning on the MLive blog. We have essentially
[09:57.600 --> 10:03.880]  now for a while early in January, stocks and bond yields were fairly negatively correlated.
[10:03.880 --> 10:09.040]  Their stock would manage to rise even when yields are falling. And this was essentially
[10:09.040 --> 10:14.760]  a software to the moon trade, even as cyclicals were fading. Right now, it's kind of the situation
[10:14.760 --> 10:19.000]  has flipped back to what you might get a little more normal stocks rising, bond yields rising
[10:19.000 --> 10:23.400]  in tandem. And that just I think that shows that you get to a certain point in markets
[10:23.400 --> 10:27.960]  where you can't make the valuation excuse anymore or you can't say that falling yields
[10:27.960 --> 10:31.700]  are just always and everywhere a good thing for risk asset valuations because they were
[10:31.700 --> 10:35.840]  starting to really, really send a potentially negative signal about the growth outlook.
[10:35.840 --> 10:40.600]  And now as yields rise, it's more having to do with some of the tail risk, whether rightly
[10:40.600 --> 10:44.840]  or wrongly, based on how limited information we have at this juncture kind of being ebbed
[10:44.840 --> 10:51.000]  away at. All right, Luke. Luke, how great to have you with us. Appreciate it. Coming
[10:51.000 --> 10:55.820]  up, lawmakers, Democratic and now Republican are stepping up their efforts to fight climate
[10:55.820 --> 11:00.800]  change and addressing the nation's aging water systems as high on the to do list. We'll discuss
[11:00.800 --> 11:05.840]  the evolving topic of water safety with professor and public health expert Kellogg Schwab. This
[11:05.840 --> 11:14.460]  is Bloomberg. Bloomberg Television brought to you by Principal Financial Group, committed
[11:14.460 --> 11:19.240]  to delivering specialized investment solutions to clients around the globe. Get to know us
[11:19.240 --> 11:25.000]  at principal.com. Hi, I'm Barry Sloan with NewTek, your business solutions company. Does
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[12:40.920 --> 12:55.480]  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 --> 13:08.240]  the breadth of possibility. We look at stories from every angle to provoke debate, spotlight
[13:08.240 --> 13:14.720]  solutions, and make sense of the greatest crisis of our generation. Bloomberg Green,
[13:14.720 --> 13:27.280]  solutions for a changing climate. This is Bloomberg Markets. I'm Sherry Yonni, New York.
[13:27.280 --> 13:32.120]  And I'm Amanda Lang in Toronto. House Republicans are unveiling their plan to combat climate
[13:32.120 --> 13:36.440]  change today in answer to Democrats who have dominated on the issue. More public health
[13:36.440 --> 13:40.840]  officials are calling for water safety to be prioritized as part of the efforts. It's
[13:40.840 --> 13:44.880]  already playing out at the state level. New Hampshire Governor Chris Sununu spoke with
[13:44.880 --> 13:51.160]  Bloomberg yesterday about his own plan. We're making a huge investment in clean drinking
[13:51.160 --> 13:55.680]  water infrastructure here, about a $400 million investment, no taxpayer dollars. We're using
[13:55.680 --> 13:59.580]  it from the settlement money we got from Exxon years ago. So we're doing it kind of taxpayer
[13:59.580 --> 14:05.560]  free and allowing those dollars to go at the 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 --> 14:14.200]  He joins us from Baltimore. Professor, it's so interesting to hear the governor stress
[14:14.200 --> 14:19.800]  no tax dollars in a way that almost undermines the importance of the issue. Tax dollars could
[14:19.800 --> 14:25.620]  very well be directed to this. Are we missing the point or the importance of water safety?
[14:25.620 --> 14:30.240]  Water safety is incredibly important. A drink of clean, safe water from the tap is one of
[14:30.240 --> 14:35.520]  the most undervalued assets of American life. These climate change stressors, including
[14:35.520 --> 14:40.520]  extreme rain and drought, are putting pressure on our existing water supplies as well as
[14:40.520 --> 14:44.760]  in our aging drinking water and wastewater infrastructure that can affect public health
[14:44.760 --> 14:50.020]  and the business sector. So it's incredibly important that we engage together in finding
[14:50.020 --> 14:53.720]  these important solutions. Professor, how important is clean water for
[14:53.720 --> 14:59.600]  the economy and how important is it to shape 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 in where they said that there's
[15:03.880 --> 15:10.600]  a staggering 240,000 water main breaks per year in the United States, costing an estimated
[15:10.600 --> 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 our waste to have a thriving economy.
[15:34.240 --> 15:37.360]  I think there's an understanding that from an infrastructure point of view, there's a
[15:37.360 --> 15:41.160]  mountain to climb here regardless. Right across North America, we have aging infrastructure
[15:41.160 --> 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 --> 16:03.620]  removal. There's hundreds of thousands of miles of these pipes. They're worth trillions
[16:03.620 --> 16:08.840]  of dollars. But sadly, they're underground. They're ignored. And with that ignoring, we've
[16:08.840 --> 16:13.360]  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 --> 16:26.640]  and the amount of drought, and that will add to this problem. But we have some solutions
[16:26.640 --> 16:31.400]  we 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 --> 16:37.700]  of that.
[16:37.700 --> 16:41.200]  How would you assess the Trump administration's policy on this front?
[16:41.200 --> 16:47.200]  Again, at the government level, it's important to realize that these are decades-long challenges,
[16:47.200 --> 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 --> 17:29.800]  renewable resource? I mean, there are already, obviously, parts of the world, but certainly
[17:29.800 --> 17:34.020]  parts of America, that are experiencing real water shortages, and some of them are permanent
[17:34.020 --> 17:38.280]  in nature. Are we on top of that issue as a live fact that we could have to deal with
[17:38.280 --> 17:40.400]  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 --> 17:50.400]  and even Florida, are pushing water reuse. That's this idea that we can consider this
[17:50.400 --> 17:54.620]  as not a one-off. You can't just take water, use it for one thing, and discard it. We have
[17:54.620 --> 17:58.760]  to consider it part of our entire system. And we can all do better. Here in the East
[17:58.760 --> 18:03.180]  Coast, we've considered to have lots of water, but we're under water stress as well. So across
[18:03.180 --> 18:08.560]  the country, we need to continue to drive innovation and innovative ways that will improve
[18:08.560 --> 18:14.480]  not only water availability, but the business sector's reduction of water use. And there
[18:14.480 --> 18:18.600]  is a market to be made in this. As we go forward, we have to be engaged in a way that can be
[18:18.600 --> 18:26.560]  proactive to produce high-quality water, still relying on basic public health principles.
[18:26.560 --> 18:30.280]  At the end of the day, it will all come down to cost, right? How much it would cost to
[18:30.280 --> 18:34.240]  actually make all of these improvements. Where would those funds come from?
[18:34.240 --> 18:38.740]  Yeah, that's a challenging question. What sadly happened is, over the decades, we've
[18:38.740 --> 18:43.640]  ignored the true value of water. We built these pipes hundreds of years ago, decades
[18:43.640 --> 18:48.220]  ago, and then we haven't valued what it means to maintain that high-quality water because
[18:48.220 --> 18:52.440]  the pipes are hidden underground. Now, raising water bills is an important part of that,
[18:52.440 --> 18:56.800]  but a tariff structure is important. We also need to consider that there's a business approach
[18:56.800 --> 19:00.980]  to this as well. At the government level, we do need to invest this. There's ideas of
[19:00.980 --> 19:06.720]  an infrastructure. You see the roads, you see the bridges, but within our pipe system,
[19:06.720 --> 19:11.400]  we have a need, and there's jobs to be made in this, to push forward the resources that
[19:11.400 --> 19:20.000]  allow us to have a thriving economy. The American Civil Engineers 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 --> 19:43.200]  jobs could be provided by having the sector be part of that economic thriving building.
[19:43.200 --> 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 --> 19:56.360]  Bloomberg, founder of Bloomberg LP and Bloomberg Philanthropies. Coming up, we take a deeper
[19:56.360 --> 20:00.600]  look into the cancellation of the Mobile World Congress as the impact of the coronavirus
[20:00.600 --> 20:09.280]  continues to spread. This is Bloomberg.
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[22:12.840 --> 22:15.240]  This is Bloomberg Markets. I'm Amanda Lang in Toronto.
[22:15.240 --> 22:21.520]  And I'm Sherry Yan in New York. GSMA is canceling the Mobile World Congress in Barcelona 2020
[22:21.520 --> 22:27.200]  due to global concern over the coronavirus outbreak. GSMA CEO John Hoffman says the spread
[22:27.200 --> 22:31.520]  of the deadly virus makes it impossible to hold the event. For more, we welcome Mark
[22:31.520 --> 22:36.080]  Gurman of Bloomberg Technology from Los Angeles. Mark, so was this just inevitable given the
[22:36.080 --> 22:40.320]  number of companies that already pulled out, including those carriers who are supposed
[22:40.320 --> 22:46.920]  to be the buyers at this trade show, right? Exactly. Inventable is the best way to explain
[22:46.920 --> 22:51.720]  it. We've been anticipating this for the past few days. You've had basically every major
[22:51.720 --> 22:56.280]  player who would have been at the conference in Barcelona either pulling out or pressuring
[22:56.280 --> 23:04.440]  the GSMA, the parent company of this MWC conference, to pull out. We saw Sprint and AT&T yesterday.
[23:04.440 --> 23:09.280]  Qualcomm was just awaiting this announcement to happen. They're one of the bigger players
[23:09.280 --> 23:14.000]  there. Some of the companies like Samsung and Huawei privately have scaled back which
[23:14.000 --> 23:19.600]  executives they were going to send. You saw calendar invites being canceled for meetings
[23:19.600 --> 23:24.220]  that were being set up. So this was bound to happen. And for sure the right decision
[23:24.220 --> 23:29.200]  because they really had no other option. The other side of this, however, is the significant
[23:29.200 --> 23:33.940]  economic impact this is going to have on the city of Barcelona, which has been preparing
[23:33.940 --> 23:39.760]  to host this thing for several months now. Industry there, hotels, restaurants, different
[23:39.760 --> 23:44.000]  activities people would be engaging with from this conference. But also the budgets that
[23:44.000 --> 23:48.000]  were set aside by these companies in order to put on this conference and attend this
[23:48.000 --> 23:53.440]  conference. Now that all has to be worked out as well. So obviously there will be some
[23:53.440 --> 23:57.240]  direct pain, as you know, to Barcelona, the conference organizers, maybe some savings
[23:57.240 --> 24:01.480]  on the part of the businesses that don't go. But what about some of the intangibles impacts
[24:01.480 --> 24:06.040]  here, Mark, of the collaborations that don't happen, the sales that don't get made, the
[24:06.040 --> 24:10.440]  ideas that don't get sparked? How do we measure any of that? Yeah, I mean, immediately the
[24:10.440 --> 24:14.520]  way to measure this is basically these are a bunch of business deals and meetings that
[24:14.520 --> 24:20.320]  would just not happen otherwise. But on the other side of the coin, it's 2020, right?
[24:20.320 --> 24:24.280]  What that means is a lot of these important meetings are likely to get rescheduled pretty
[24:24.280 --> 24:29.200]  quickly, whether that's via conference call or phone call or meetings elsewhere. The good
[24:29.200 --> 24:34.760]  news is travel and digital communication is so simple these days. So my wager would be
[24:34.760 --> 24:38.960]  if there was to be a super critical meeting between a company and a partner, it's going
[24:38.960 --> 24:43.640]  to happen anyways one way or another. So I don't think the impact is that severe if you
[24:43.640 --> 24:48.760]  really sit down and think about it on that aspect. Mark Gurman, Bloomberg Technology,
[24:48.760 --> 24:52.200]  thank you very much for joining us with the latest on the cancellation of the Mobile World
[24:52.200 --> 24:59.240]  Congress in Barcelona. And Amanda, it was a great day to be Korean when I saw the Parasite
[24:59.240 --> 25:05.440]  made history at the Oscars this week. They won that coveted Best Picture award, the first
[25:05.440 --> 25:11.280]  ever in the Oscars history, given that it was a foreign language film, right? So it
[25:11.280 --> 25:15.360]  was really an amazing day, but it wasn't just Bong Joon-ho, the director they're celebrating,
[25:15.360 --> 25:21.000]  it was also a Korean hedge fund investing around $500,000 in the film. And remember,
[25:21.000 --> 25:29.880]  this only cost $11 million to make, but then it raked in $165 million. So given the type
[25:29.880 --> 25:35.360]  of reception that it's received, you can just imagine how well the hedge fund could do.
[25:35.360 --> 25:41.320]  And this GTV chart on the Bloomberg also showing you that Parasite was of this film, they gained
[25:41.320 --> 25:47.160]  what, like 90% this week. Take a look at that. Amazing. Lots of people who had the potential
[25:47.160 --> 25:51.600]  to help distribute this film and passed on it, of course, now kicking themselves. Sherry,
[25:51.600 --> 25:57.320]  it took Canadians about 22 hours to make a claim to this film. One of the actors, the
[25:57.320 --> 26:01.640]  guy that plays the son, is actually a Korean Canadian. He spent some of his childhood here
[26:01.640 --> 26:08.880]  at Wentz University here. So we're claiming a piece of this too. We're both are. Remember,
[26:08.880 --> 26:12.480]  Bloomberg users can interact with all the charts you see on the network. GTV Go is your
[26:12.480 --> 26:42.360]  function from Toronto and New York. This is Bloomberg.
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[29:15.120 --> 29:24.520]  1-800-775-9500 now. I'm Mark Crumpton with Bloomberg's first word news. A global health
[29:24.520 --> 29:29.400]  official says it's quote way too early to try to predict the beginning of the end of
[29:29.400 --> 29:34.800]  the virus outbreak that began in China. Dr. Mike Ryan spoke at a news conference today
[29:34.800 --> 29:39.940]  at World Health Organization headquarters in Geneva, but he added that it is reassuring
[29:39.940 --> 29:45.220]  that the number of daily cases appears to be stabilizing. That's due mainly to China's
[29:45.220 --> 29:51.840]  huge public health operation, which has placed 60 million people under a lockdown. Former
[29:51.840 --> 29:57.360]  Massachusetts Governor Deval Patrick has drums after Patrick failed to secure 1% of the vote
[29:57.360 --> 30:01.480]  in the New Hampshire primary. He entered the Democratic race just three months across the
[30:01.480 --> 30:06.800]  country focusing some of his energy on South Carolina, where he hoped to cut into Joe Biden's
[30:06.800 --> 30:12.360]  support among African Americans. But his campaign never caught fire and he didn't qualify for
[30:12.360 --> 30:18.100]  any of the presidential debates. House Republicans boycotted an intelligence committee hearing
[30:18.100 --> 30:23.940]  today as hard feelings remain following President Trump's impeachment. Congressman Devin Nunes,
[30:23.940 --> 30:28.140]  the panel's ranking Republican, complained in a letter to intelligence Chairman Adam
[30:28.140 --> 30:57.400]  Schiff that under his leadership, the committee quote has