tv Bloomberg Markets Bloomberg March 22, 2021 1:00pm-2:00pm EDT
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the toll of illegal migration. the white house says the u.s. delegation will meet with officials to discuss ways to stop migrants from traveling north to the u.s. order as well as strategies to address the root causes of the migration. president biden says he plans to visit the u.s.-mexico order at some point for a firsthand look at conditions. the united states and european union are imposing sanctions against china over alleged human rights abuses. the reaction drew an immediate reaction from beijing which set out its own punitive measures aimed at the eu. it's part of a new human rights violation regime targeting abuses in different countries. there was a similar approach to russia over the gelling of alexei navalny. new york city high schools opened for in person learning, that brings the last group of students back to their classrooms in the nation's
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largest public school system. the reopening will only affect about 20% of new york's high school students who signed up for in person learning when given the choice last year. the majority of the systems one million students are still learning remotely. the top infectious disease expert in the united states says data on the covid-19 vaccine developed in russia looks quite effective. dr. anthony found she was asked about the sputnik shot today. in january, u.s. health officials urged brazil not to allow the russian vaccine, accusing moscow of rushing it through approvals to the detriment of u.s. safety and security. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton.
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romaine: it is 1 p.m. in new york, one a.m. in hong kong. here are your top stories we are following from around the world. wall street billionaire leon black steps down ahead of schedule but also gives that the chairman's spot -- an abrupt turn for black who turned apollo into one of the most fearsome and profitable names in american finance. ev is in focus as shares soar -- expense in -- expansion plans drive american vehicles and traditional carmakers higher. the nfl is changing the media game. we will talk with one of the league's top executives about his new tv and streaming deal
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and the future for directv's sunday ticket. first, let's take a quick check out what's going on in the markets. we have gains in stocks -- this -- the tech stocks taking the lead, the nasdaq up as yields come down. these numbers are green because the price is up even though all we care about is the yield. it is coming down to 16787. the turkish lira, right now you can buy 7.8 turkish lira for the dollar. the turkish currency weakening against the greenback against yet another central bank had showed the door. the end of an era for one of the world's largest primary equity firms.
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-- private equity firms. leon black stepping down month ahead of schedule, but most important lay, he is giving up his chairman spot. was this a surprise? >> it certainly was. we already knew he would be stepping down as ceo. he is the largest shareholder of apollo but it's a humongous move for someone who has led apollo 431 years. matt: what does this mean for shareholders? leon black is the largest, but they haven't seen that much change recently. >> you have apollo shares really stagnant this year compared to blackstone. people see huge growth in private equity and deals
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happening left and right. apollo itself in the middle of an $11 billion deal. a fast-growing firm that was the brainchild of mark rowen, they ceo of apollo. it's still unsure how this is going to work out. some investors don't know that it would mean to the value of a private equity firm. a lot of questions for apollo even as it starts to turn the page in terms of management and turn the page further away from this jeffrey epstein stock that has been a dark cloud -- jeffrey obscene saga that has been such a dark cloud. matt: leon black reportedly paid jeffrey epstein 158 million dollars for tax services. that's not new, but it is that kind of things -- the kind of
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thing i continue to wonder about. what does someone do with 158 million dollars from someone who really already knows what he's doing in finance? >> it really was a head scratcher. remember they did and independent investigation of leon black and found there was no criminal activity, but that number was a cloud over his head , a cloud over apollo. the former sec chairman is going to be the chair of apollo. so it did a lot to distance apollo from the saga, though it was mostly black himself. matt: elsewhere in finance, we see blackrock starting to sell factor etf's for very low fees.
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what is the story there? >> private equity is raking it in. you have blackrock shares really lowering their etf fees as vanguard has helped them drive this race to the bottom -- something to note, i shares was more than a third of the a um at blackrock. but even though they were more than a third of the aum, active management was almost half the seeds. how do you grow faster in terms of revenue, not just assets under management when you are at this race to the bottom? matt: it does get a little confusing when you are spending the day thinking about the performance of apollo versus steve schwarzman's blackstone
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and then turn the page quickly and talk about what's going on in blackrock -- still important. thank you very much. time now for the stock of the hour -- draftkings got another upgrade this morning as wagers roll in for the ncaa tournament. investors are betting the big gains of last year are enough. we're looking at the year long story. what are you finding? >> shares are down despite the fact we have a flurry of good news. the capital market reiterating its bullish outlook and we have march madness rolling on. much to the disappointment of many. what's more, we have three states that have legalized betting.
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that's giving them a big boost as well. they highlighted new york as a gigantic opportunity in online gaming and they are not alone here. you see there are 18 byes on this stock and just one cell. -- just one sell. they are up 550% -- perhaps because people are stuck at home with covid board. what i do know is that they had an ipo in april of 2020 and have not looked back since. matt: gambling has definitely been good business during the lockdown. shareholders have made a lot of money. who else is putting up big net worth numbers due to this? >> not sure i can hear you. we do have massive paychecks for
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those co-founder's. more than six hundred million dollars between them. if you look at the checks, the majority going to stock awards. it rained on them and that shareholders and what would you do with the money? matt: i would be off to a beach. probably not miami beach but definitely be sitting in the sand under the sun. thank you very much. speaking of sports and money, amazon's landmark deal with the national football league it's the first streaming company -- we know that. there are still a lot of questions when it comes to the league and the broadcast. what's the deal with directv's sunday ticket?
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matt: this is bloomberg markets. i'm matt miller. now to something that caught my eye -- once again last week we showed you the shares of volkswagen, absolutely soaring. in terms of market value, the company adding billions. the interesting thing we pointed out is porsche holdings -- not the carmaker, but a holding company that owns 53% of volkswagen was rising, not really in lockstep. the premium over the companies that hold them was really jumping.
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today, we see a pickup. in fact, it's the first time in my life i can or member porsche holdings -- which is not the carmaker, but a shell that holds a stake in volkswagen as the biggest gainer on the stoxx 600. gaining 9% today. still a lot of premiums to make up. an interesting story there. let's get more on carmakers -- volkswagen has been an interesting story. bmw had a great day, diamond had another 52 week high, and i think is the ev story driving these carmakers hire. elizabeth: absolutely. it seems as though investors are finally taking notice of all the ev plans we've seen detailed over the past weeks and months. especially the past week, just a
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firestorm of announcements and it does look as though investors are liking what they are seeing. commenters have been talking just how much they are investing and they seem to have gotten the more convincing message out that was also quite strong on details. that's happening at a time when electric vehicles look finally to be taking off and finding more customers. whether this rally is going to peak, we can't say yet. matt: obviously there are a lot of stumbling blocks and if we knew the answer to whether or not the rally would stick, you and i would be somewhere else. deutsche bank has come out and
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said volkswagen is worth 230 billion dollars and volkswagen is going to overtake tesla as the biggest electric carmaker. vw last week said they are going to double the sales of tesla. there was a great piece on the software push, $30 billion, 10,000 employee investment -- you had a great story out today on the apple car. i wonder who the biggest carmakers are making the biggest push, that are going to be the winners of this apple card gamble? elizabeth: like i'm describing in the story, four car parts makers, any apple car would be great news because it would add a new customer and a customer that is so powerful that it can
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disrupt the market and have a change toward ev's even faster. that's coming in the middle of a transformation that is quite difficult. ev, part of the equation, developing faster than anticipated. that is going to develop faster and be larger. matt: what are you hearing as far as a possibility as far as a collaboration with big carmakers? i remember when tim cook visited the ceo of bmw. there were talks about the possibility they could collaborate down. it seems like mercedes would make a great partner and audi
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would also be a great apple partner. is it possible we see one of these big luxury carmakers team up with the cupertino company? elizabeth: my guest is as good as anyone -- my guess is as good as anyone following these markets. i doubt the luxury carmakers would invite a huge disrupter into their midst. i think that would be difficult for them to stomach. at the same time, it is hugely tempting to be on that apple ticket. what we have seen so far is apple talks have focused on carmaker partners like hyundai and we know talks there have fizzled. the opinion in the market seems to be a collaboration with the
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likes of foxconn would be more likely than perhaps one of those luxury carmakers in germany. matt: or maybe magness dyer. they make the wagon in austria. inc. you for joining us. our european autos editor coming to us out of bavaria. still ahead, the nfl signed a series of tv deals valued at an estimated $105 billion. we reported that last weekend now we are going to discuss some of those changes and ask what's next with hans schroeder of nfl media. this is bloomberg. ♪
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i'm matt miller. the nfl announced last week a series of long-term television deals valued at $105 billion, including a historic contract that gives amazon exclusive rights to thursday football broadcasts, the first for a streaming company. hans schroeder joins us now to talk about what the future looks like for the most important sporting league in america. let's talk about the streaming deal. what do you think it means for thursday games? when i was a kid, it was so exciting but i think people didn't stay as excited about thursday games. it wasn't always the best match up and monday night is still the king. is that going to change? hans: thanks for having me. it's an interesting question. from our view, thursday nights
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already established itself as one of the key pillars of nfl nights of the week. if you look at what we've done since 2006 when we launched thursday night football on the nfl network and how we built that with our partnership with fox, we established thursday night as a key exciting night of nfl football to go along with sunday night and monday night. we are super excited to take the next step with that package and the road ahead of us with amazon, we could not be more excited about. really a monumental shift in the first time a digital company has bought a major set of sports rights. amazon, they stream the game on prime alongside fox. we are really excited about it
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but it is something that extends across all of our deals and not just with amazon but the importance of digital and being on more screens, that is really important and that's why you see what we did with nbc and peacock or cbs with paramount plus, all of our game packages have anything more meaningful set of rights on digital and more availability than they have ever had before which we think creates a win/win situation. matt: what's going to happen with sunday ticket? i think directv is no longer going to be doing that -- for a football fan, if you are a true football fan, you've got direct tv for that purpose. what is going to happen to that package now? hans: we've had a great
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partnership with directv that goes back 25 years. we have two years left on that partnership which we couldn't be more excited about. directv is going through a lot of changes and we will continue to evolve that product with them over time. we have two more years to work with them and figure out what the future of that product will look like, but we agree with you. we think it's an immediate part of our portfolio and the delivery of all the sunday afternoon games to a fan and the supersized product we know our most avid fans love. as we look ahead, similar to the deals we just finish, we think there will be a lot of interest in the marketplace, different companies with different models and what that product would look like going forward in the ability to innovate that as well. we have a little time to figure that out and i'm excited about how that will hold.
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matt: as a fan out of berlin who is starved for nfl content, i can't wait until you guys sign some sort of global streaming package so i can watch all the games as they happen from here. hans schroeder, the coo of nfl media talking to us about -- i guess it's fair to say, america's most important sport. coming up, cannabis stocks take a pause. there was a big run up in pot stocks and it kind of tapered off but maybe there's a little bit of interest. we will talk to one investor who's going to try to spark it off. this is bloomberg. ♪
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mark: i'm mark crumpton with bloomberg's first word news. weekly covid-19 deaths rose for the first time since january. fatalities climbed by more than 61,000. infections increased for a fourth straight week by more than three million. brazil continues to be the global hotspot, seeing a record number of cases and deaths. eastern europe is also seeing a resurgence. the united states saw cases rise for the week, however fatalities were the lowest since november. boris says the european union does not want to launch a vaccine battle despite the warning is set to restrict exports of coronavirus shots to the u.k. the prime minister says vaccine supplies is vital because immunization programs require countries to work together. prime minister johnson: i am reassured by talking to them that they don't want to see blockades. that's very important. mark: prime minister johnson was
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speaking after the eu sent out plans to restrict the exports of vaccines and components to the u.k., a step companies have said does not meet obligations to the block. russian president, vladimir putin, says he plans to get vaccinated on tuesday against covid-19. he did not say which of the three russian vaccines he would take. opponents have criticized president putin for not getting vaccinated, arguing his reluctance is contributing to the reticence of getting the vaccine. only 4% of russians have received at least one dose of the vaccine. the u.s. supreme court says it will consider the justice department's bid to reinstate the death sentence for the convicted 2013 boston marathon bomber. his lawyers acknowledged at the beginning of his trial that he and his older brother set off the two bombs at the marathon finish in 2013, but argued that
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he is less culpable than his brother, who they said was the mastermind. he was convicted on all charges against him. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. amanda: this is bloomberg markets. matt: i'm matt miller. we welcome our bloomberg and bnn at bloomberg audiences. here are the top stories we are following from around the world. canadian pacific agrees to buy kansas city southern for $25 billion. we will show you the rail
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network linking the u.s., mexico and canada in the first year of the new trade alliance. plus, cannabis stocks coming off their high. we will talk to the former ceo of 5th street as he leads a new venture tied to the infrastructure and real estate surrounding the pot industry. and as angela merkel agrees to extend germany's lockdown, we will discuss the latest on covid restrictions and the vaccine that will hopefully lift the former. let's get a quick check on what's going on in the markets with amanda. amanda: a lot of moving parts -- still yield in focus but in a different way. maybe events in turkey have bond sales higher. the 10 year moderating a little bit and that has stocks rotating again. the groups that contain the strongest on the s&p 500 has the
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nasdaq powering higher. weakness in toronto and keeping an eye on west texas, a mixed picture out there, still at a very elevated level considering global demand. one big piece of the puzzle is the aerospace industry. folks in that industry saying even once we get vaccines fully embedded it globally, their capacity reduction means global demand end air travel will not be what it was for a few years. that should keep a bit of a lid on demand. kalin robin sq rescued canada's largest airline and is on the lookout for deals in the aerospace industry. let's start there. i guess it's not a bad time to
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be looking for deals. where do you see the opportunities? guest: field has a long history and i think that's one of the reasons to come on board. coming on as a senior advisor, brookfield has had a long term of investing and that's what's needed here to benefit from some of the fundamental, transformational things going on in both conventional aerospace and aviation and all the aviation services. between the two sectors, this is a colossal opportunity. many billions of dollars,
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trillions of dollars, and i think there will be some interesting dynamics that come out of it. matt: how do you think the recovery is going to compare to the recover we we had after the great financial crisis? calin: after the financial crisis, there were some fundamental things that needed to be corrected. we saw the recovery come back very quickly. because of the shock to the system in so many industries that have been disproportionately affected, you are seeing and uneven directive. you did not see a conventional direction this time around and there are categorical losers and categorical winners in terms of what we've seen over the course of the year. some are going to be
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skyrocketing, but my personal perspective is investing in the right dynamic at this moment, this is a unique moment in time and we have unfortunately had the opportunity to see what happens to semi businesses. i'm not talking just about aviation. when you look at the industries affected post 9/11, you are sitting on a different dynamic with a similar kind of opportunity. you have two have the same power for the longer-term, no question about that. amanda: you are known in canada in the aviation industry as a fixer. you took air canada out of anchor of c. it is obviously something that can be done in the airline
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industry. if you are looking at other sectors, where do you see those kinds of opportunities? calin: some of the businesses that have been affected, looking specifically from a field perspective, two thirds of the private equity portfolio are and what we would characterize as industrial and business services. that's why we thought aviation aerospace was quite complementary. you start with something and have a solid investor who understands the space and we are going to look for opportunities that fit into that dynamic. that could be an adjunct and that happens to be the space
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where this great opportunity. you can think of anything up and down the supply chain, for people who train people, for people who repair and transport, this is a massive supply chain and all the way up and down, providing what we just described. matt: what do you think about pricing power the airlines have? flying from new york to san francisco to see the grateful dead, the absolute dollar price of my ticket was the same as it was when i flew out to see the dead in 2015. the band is not the important part, but the ticket price didn't change. it was exactly the same in 1990 was as it was in 2015. can they change that?
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calin: first of all i totally agree with you but some people would argue the cost of aviation is too high. i think what we have seen over the last 25 years as there have been new entries into the aviation space. people who are price-sensitive will have the opportunity to find a cheap price to fly. as the world has opened up and we have been able to get on an aircraft in toronto and get off 14 hours later, direct flights to places like tokyo and shanghai or sydney, australia. that came with the cost. we've seen an ability for the carriers to price that out in lower-priced carriers to make
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sure that grateful dead concert can be attended over 20 years. you are going to see after this pandemic, you will see some pent-up demand for leisure, forcing things like that. that will happen and there will be price stimulation and coming out of the pandemic will be low for stimulation. amanda: great to have you with us. we look forward to hearing about some of the deals you are suggesting. for what it's worth, a big deal in the transportation sector today -- cb rail merging with kansas city southern. we want to show you the map of what this does. the real significance is this
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creates a transcontinental railway system. there are links between canada and the u.s., but this is truly canada to mexico. an amazing system that would come together in this deal. matt: very cool. i was so psyched to see this deal pop up over the weekend because you don't really hear that much about rail. it's such an old school, old economy business and then to see a huge number tied to it -- a 25 billion dollar deal is quite cool. i wish we would travel more by rail in the u.s. amanda: me too. matt: do people travel by rail? when we come back, we will talk about weed. pot stocks may be off their records highs -- their record highs, but we will speak about a new public company.
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matt: this is bloomberg markets. i'm matt miller with amanda lange in toronto. we want to talk about weed right now. lent at tannenbaum joins us and he may not be the fascia expect to see when you are about pot stocks. for a long time, we talked to him about everything else in and around wall street. he sold his business to howard marks and now is the cfo of afc gala which focuses on lending to companies in the cannabis space. let me ask you how did you make
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this turn? surely it is a growing industry, but it is not what i necessarily expected from you. len: and not what i expected either. we saw all of these pot deals, cannabis deals and none of the family office was pursuing it. why is everybody looking at this space? to watch the growth of the space is incredible. from $2 billion in 2022 to be $5 billion and 20 to anyone. there's got to be something here and i put over $60 million of my own money to work. i saw the opportunity was really big and decided to join with my wife and my partner to form afc g, which is a mortgage rate.
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-- mortgage reit. amanda: one of the things in your favor is cannabis companies have a hard time being bank. there's a bill in congress to improve access to banking. would that bad for you? would that reduce the ability to get the rates you want? len: i hope state banking passes. the need is billions and billions of dollars of capital. those cannabis companies need to borrow, but also raise equity and to be able to facilitate that. up until advanced flower, there is not that option. we provide that option to lend money to companies secured by their cash flow, licenses and real estate. reasonable rates if you look at the equity returns. we are lending at almost pay
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percent and we are excited because we go public friday and we are the first cannabis lender to get public on the nasdaq in new york. we look forward to lending to our clients, but the state banking act is important because we need more banks. there are banks that we will deposit -- they are regular wires, not buckets of cash. we have a credit line and banks lending to us but you also need banks to deposit them and pickup trucks for cash at the dispensaries. matt: how much do you see this industry growing? say five years out, how much more land is going to be used for growing marijuana? len: the amazing thing about what is happening in the industry as everyone is purchasing legal, tax-regulated marijuana tested at the state level. it is safe, there's more and
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more of it, a good variety, and as you move through the illicit market, the illegal market is growing far greater than the legal industry. it's really important to the states. when you think about state taxing, given covid and everything terrible that has happened to our country and state tax revenue, california is almost $2 billion in tax revenue from marijuana. regulating and testing, we think that is the way of the future and i see this continuing to explode in the next five years. amanda: we will be watching afc gema. -- afc gamma. there have been encouraging results for the astrazeneca vaccine. we will talk abut the promising results. ♪
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amanda: this is bloomberg markets. i'm amanda lange with matt miller. it feels like a bit of a race between the vaccine and the variants and we saw some of the perils of people relaxing too soon. nowhere more evident than miami, specifically miami beach. what did you make of that? this real tension between people who just want to feel normal and the fact that we aren't there yet. matt: from here in berlin, where the lockdown has just been extended for another month, i can understand the desire of these people to get out and party. i honestly wonder what the mental health issues connected to the lockdown's are going to be when we look at this afterwards.
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here's a great chart showing the covid cases per million people and the u.s. is definitely doing the worst. the highest amount of cases per million -- i was surprised to see canada is doing even better than germany. canada only has about 25,000 cases per million, germany has 32,000 cases per million. the u.s. is looking at 90,000 cases per million people. amanda: you could almost track the adherence to what your government tells you in the culture of those places -- canada and germany, we tend to be pretty law-abiding and do what we are told. i want to bring in elizabeth stewart, bloomberg professor at the johns hopkins school of public health. matt is making one of the most important points here because we don't know the mental health consequences long-term. we only know those as we go. but right now, how much is too
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much? how much is the fatigue genuine? police firing pepper at teenagers feels nothing normal. but what are the issues underlying that? elizabeth: it's a great question and thank you for having me to talk about this important topic. the mental health issues underlying our interactions are going to potentially continue long after the infectious disease resolves itself. we see a lot of concerns around the lockdown and mental health implications of having loved ones get sick or yourself get sick and it is important we look for ways to help people get through this time and that might be creative ways of connecting with each other, maybe not through partying in large groups . looking to make connection so that we can get through it. amanda: we are in this very
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sensitive time -- we have good news on the astrazeneca efficacy , which means another tool in the arsenal. it does feel like a race. what's your advice from a policy level for policymakers to encourage people to just stay put -- we are going to get there but we are not there yet. elizabeth: that's the right message but it is cliche -- we are not at the finish line yet and we don't want to drop the ball. the weather is going nicer and lots of parts of the country so instead of looking for ways to get outdoors in small groups -- we cannot let up on the masking, physical distancing, handwashing, those core things that have gotten us to this point. with the vaccine, we see the light at the end of the tunnel, but we are not there yet. we need to keep this up. a race between the vaccine and the variants, but if we work together and keep up with that mitigation procedures, we can get to a better place.
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matt: thank you so much for joining us. talking to us about what we can expect and need to do. we can tell you johns hopkins bloomberg school of public health, you may have guessed by the name, is supported by michael r. bloomberg, the founder of bloomberg lp and berg philanthropies as well as this television broadcaster. for amanda lange, i'm matt miller. this is bloomberg. ♪
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warning of significant increases in covid-19 cases in some regions of the united states. the cdc director dr. rochelle lewinsky addressed the press today. >> i get it. we all want to return to our everyday activities and to spend time with our family, friends and loved ones. we must find fortitude to hang in a little bit longer. we are at a critical point in the pandemic, at a fork in the road where we have to decide which facet we will take. >> she added, we must act now and if we don't take the right actions, we will have another avoidable surge just as we are seeing in europe. germany is extending its lock-in until april 18. chancellor merkel and regional leaders agreed to the measure after covid-19 contagion rates
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