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, or watch us live on YouTube.

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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.

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.

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 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, 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.

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 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, 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.

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?

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?

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 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 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.

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 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 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.

What's been the response from government officials in the state of California.

What's been the response from government officials in the state of California.

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.

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.

Grounds for that.

Grounds for that.

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 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.

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 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.

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.

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.

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.

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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 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?

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 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?

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 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 and decided and gave guidance on that, and then insurance companies went on the back of that.

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 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 and decided and gave guidance on that, and then insurance companies went on the back of that.

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.

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.

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 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 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 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.

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 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 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 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.

Okay, so let's play that fun one of game. Sam.

Okay, so let's play that fun one of game. Sam.

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?

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?

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 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. If they end up being non experts in the vaccine world, then you start worring.

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 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. If they end up being non experts in the vaccine world, then you start worring.

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.

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.

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 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 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.

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 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 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.

Would we be thinking that there would be some exemptions for some components for some diseases.

Would we be thinking that there would be some exemptions for some components for some diseases.

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 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.

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 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.

Right, and that obviously has those repercussions.

Right, and that obviously has those repercussions.

Hey, Sam, really great to check in with you. Sam Bazzelli a Bloomberg Intelligence. He's director of research as well senior pharmaceutical analysts.

Hey, Sam, really great to check in with you. Sam Bazzelli a Bloomberg Intelligence. He's director of research as well senior pharmaceutical analysts.

Thank you very much.

Thank you very much.

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.

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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 tell us is a strong conviction rally? Is this a grind higher until we get bad news rally?

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 tell us is a strong conviction rally? Is this a grind higher until we get bad news rally?

How would you describe it?

How would you describe it?

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 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, 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 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.

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 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, 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 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.

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.

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.

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. 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.

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. 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.

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.

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.

What does that tell you?

What does that tell you?

What?

What?

How does that change in asset allocation?

How does that change in asset allocation?

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 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 equity bond.

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 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 equity bond.

What do you make of bitcoin? What's your crypto kind of call? Your shop? How do you guys think about it?

What do you make of bitcoin? What's your crypto kind of call? Your shop? How do you guys think about it?

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 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 may be subject to more of the macro risks that we're seeing at play.

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 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 may be subject to more of the macro risks that we're seeing at play.

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?

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?

It's still a good trade given the.

It's still a good trade given the.

Valuation trade or investment, I guess so the better question.

Valuation trade or investment, I guess so the better question.

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. 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.

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. 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.

All right, Joey, thank you so much for joining us.

All right, Joey, thank you so much for joining us.

Always appreciate you.

Always appreciate you.

Jo a young head of Index Product Management at Market Vector Indexes Bloomberg INTERACTI Brokers Studio.

Jo a young head of Index Product Management at Market Vector Indexes Bloomberg INTERACTI Brokers Studio.

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.

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.

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.

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.

Well.

Well.

June is Paride month.

June is Paride month.

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.

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.

Time with you. Thank you so much for joining us.

Time with you. Thank you so much for joining us.

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.

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.

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 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. 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 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 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.

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 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. 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 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 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.

Yes, go ahead, Well, just what was.

Yes, go ahead, Well, just what was.

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?

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?

Oh?

Oh?

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, so we encouraging they also encourage them to share the story. Let people know the reality.

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, so we encouraging they also encourage them to share the story. Let people know the reality.

What are the barriers to federal support and to access to capital from Asian small business owners?

What are the barriers to federal support and to access to capital from Asian small business owners?

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 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 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 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.

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 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 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 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.

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.

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.

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 even for you're right, the label shortage and also other things really a big concern.

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 even for you're right, the label shortage and also other things really a big concern.

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 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.

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 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.

I mean even JM.

I mean even JM.

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.

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.

This is the Bloomberg Intelligence podcast, available on Apple, Spotify and anywhere else you get your podcast. Listen live each weekday ten am to noon Eastern on bloomberg dot com, the iHeartRadio app tune In, and the Bloomberg Business app. You can also watch us live every weekday on YouTube and always on the Bloomberg terminal

This is the Bloomberg Intelligence podcast, available on Apple, Spotify and anywhere else you get your podcast. Listen live each weekday ten am to noon Eastern on bloomberg dot com, the iHeartRadio app tune In, and the Bloomberg Business app. You can also watch us live every weekday on YouTube and always on the Bloomberg terminal