And joel, we will start in the finance section. We have to talk about the markets because we all started off the week with a crazy stock market. Joel it has been a wild week. Backdrop here really starts last friday with the jobs report. Markets come back on monday and there happens to be a new fed chair. That backdrop is a really interesting thing that ends with this major selloff on monday. Right . And then on tuesday, it goes the other way. I think everybody has been a little whiplashed by that. A bigger conversation nine years into this epic bull market. A lot of Retail Investors have only ever seen green and this is their first time seeing red. Carol a lot of millennials, right . Joel the youngs. And its so easy to trade now. If you think about what it was like nine years ago to where it is at now, you can do this on the smartphone with a touch of a button and that is a free thing, right . A free transaction. That builds in really bad behavior. Thats part of what we read about this week. Even as it is becoming incredibly easy, that behavioral bad behavioral decisions get baked into that as well. Julia we talked about the complacency in the market and you pointed out a run that has been on for years now. Volatility has been so low. Thats not just equities. Its everywhere. We have been lulled into this false sense of security. A huge shift higher. It caught everybody off guard. Carol and that is why the inverse vix worked for so long. Then it was back in the market. Joel big time, and the backdrop to all this is the new fed chair. We have had the era of easy money, speculation that there will be a rate hike. And so that builds in all of that weird anxiety into the market and the marketplace is showing that. Julia the perfect backdrop to all of this and something clearly on investors minds as was the fact that we had an important transition this week. Jay powell, the new fed chair, what a first day on the job. Joel i mean, could you imagine . We wanted to pose that question, how did your first day go . [laughter] joel and for the most part, he is not really responsible for what is happening in the markets, right . Hes the ultimate backdrop to all of this. He is now the most important person in charge of Monetary Policy in the world. Julia inflation, jobs, that is their mandate. Asset prices come to the floor. Joel something we also talk about is the gigantic punch bowl that has been out there. Now the market is starting to feel anxious that the punch bowl gets taken away bigger than anybody wanted. A lot of what we have seen this i thinka lot of what we have seen this week is based on that anxiety. Carol it may be a political play, as well. Joel that is the other attention to this is you have a trump thing. The yellen thing never came to a head. They had a peaceful coexistence. But if there is a change in Monetary Policy from the fed, you just have to start to wonder what this trumppowell dynamic will look like. Thats what peter coy talked about. Carol interesting first day and first week for the fed chairman. We have more from peter coy. Peter he turned 65 on february 4. Assumed the chairmanship on february 5. And on february 5, the market went down by the biggest point drop in history. Julia welcome to the job. Peter so yeah, the point of my story, i started working on this before the market took its big break. I was kind of thinking, donald trump has been bragging about the stock market since he took office. It has been a good line for him because the market keeps going up and up. He is telling people, check your 401 k s. And i was thinking, the fed has said it wants to raise Interest Rates and at some point it wants to make those industries pinch. When janet yellen was raising rates, she was doing the right thing, but it was not pinching. You know the financial , conditions overall were very easy because the stock market kept going up, bond yields, long end of the curve, were low. That has to change at some point because the only way you can stave off inflation is by making financial conditions tighter. Which is never going to be good for stocks. It is obviously intended to keep the economy, the job growth from going to extreme levels. So you knew a collision was going to happen. I didnt think it would happen on powells first day in office. Carol we had a story on the bloomberg early saying he comes in and the economy is doing great, maybe getting a little heated up, and bam. The market comes undone. And now he is in an interesting situation potentially. Peter because he obviously, nobody wants to get into a twitter war with the president of the united states. Im sure he wont. I dont think he has a twitter account. Another thing, he cannot back off and avoid conflict with the white house because the fed has a dual mandate to keep full employment, but also to keep the value of money stable, which means avoiding excess inflation. Carol what about the markets . The Financial Markets are not part of that mandate, but we know from fed testimony and speeches that they are always looking at what is going on in terms of the Financial Market conditions. Peter right, so the logic would be, if you are strictly focused on the dual mandate, well if the market takes a big goes up a lot, that would cause people to overspend. It goes down a lot, the opposite would chill the economy. That would be a reason, not because you are trying to protect any particular persons gains in the markets. Julia what we saw the week before last was a reset as far as Interest Rates were concerned. We saw a dramatic steepening. So back end yields coming up doubledigits. Throughout the back end of the Interest Rate curve, which i think had a lot of people wondering, whats going on here . The question is, how much tightening effectively can the Financial Markets and stocks withstand, and how much tightening can President Trump withstand . Because there are two themes in your story. Overtookurrent events perhaps the initial theme. Peter i think they will turn the knob a little bit, see how the economy reacts. If its not crashing anything, turn a little more, because they do believe that rates are below the equilibrium level. Now thats a tricky process, though, because very often, tightening cycles end in tears. They end in recession. Not intended, but the federal funds are a blunt instrument and its hard to calibrate scalpel like precision. Julia up next, who is on the receiving end when china tightens the screws on stimulus . Carol and some revisionist history threatens poland. Julia this is Bloomberg Businessweek. Carol welcome back to Bloomberg Businessweek. Im carol massar. Julia and im julia chatterley. You can find us online. Carol in the economic section, a credit squeeze is on in china just like other parts of the global economy. Julia but in china specifically, the corporate titans are feeling the pinch. Carol here is editor christina lindblad. Christina in china, authorities have been particularly worried about debt in the corporate sector. Rather than use benchmark Interest Rates, rather than use them, they are using targeted measures so as to not compromise growth. So, i think the alarm bells started sounding in 2016 when Chinese Companies went on a huge m a binge that wilted them to number two in the global m a. Behind the u. S. That was a wakeup to chinese policymakers. A lot of these deals were happening abroad. And a lot of them were debt funded. Carol talk to us about the levels of debt. We have had shortsellers come on and talk about the chinese debt. Put it into perspective for us. Cristina there is a mind blowing number. Between 2008 and 2016, chinese debt increased by 22. 4 trillion. That is bigger than the economic output of the u. S. Carol huge. Cristina yeah. The debt to gdp, which is a common looked at ratio, went from 159 to 260 in 2016. And despite this current campaign, its probably going to surpass 300 by 2020 is what Bloomberg Economics team julia that debt keeps rolling over and at some point there isnt that the ability to roll over. And then come up to get some kind of crunch . Ristina whats happening is the Chinese Government is forcing some of the big conglomerates there is a crash diet. Youre told you have to sell off some of these assets at hna, which is a company that has received a lot of attention, which some people have compared to ing because of the level of , you know, relationships getting hot. Nothing becomes quite clear until things get bad. So they are definitely on a huge , push to sell assets. They basically disposed of real estate projects like they have in london and australia. They were in the middle of this big Luxury Real Estate push. Julia and they have stakes in really wellknown companies. Deutsche bank, hilton, 3rd avenue and park avenue. In terms of the assets they have piehere, the fingers in the are wellknown, large, and have Global Implications if there is a problem. Cristina its true. The question always remains, how far would the Chinese Government go . We saw in europe and the u. S. , governments went quite far in ensuring that companies would not collapse entirely. Julia there is an implicit backstop. These guys think the Chinese Company will not let the company go because they dont want the ripple effect. That seems to be a backstop assumption. Do you think that mentality is changing as a result of what we are seeing in the tightening, the shift from xi jinping . Cristina no, i think it is a pretty good bet that no large Chinese Company will be allowed to fail. And also we have to remember, this is an economy that is very different from others. Capital controls mean hot money is not an issue, really. So we dont have the sudden swish out when people see problems. That punishes everybody. And domestic savings are really high. I have said personally that i could see a scenario in which the government, if it had to, would confiscate money from those savings to mop up a crisis. Julia in the politics section, the nationalist government in poland continues to break ties with both nato and the eu. Carol we got more on this from our editor,. Matthew there has been a nationalist fervor sweeping across eastern and Central Europe for a couple years now. In poland, the most recent example of that is a new law they have just signed that makes it a crime, punishable up to three years, to imply that poland was complicit in any sort of crimes related to the holocaust. Their point is they are trying to clean up the countrys image abroad, but it is doing the exact opposite among allies. Israel is not pleased with this. The u. S. Is not pleased with this. This is a time when poland is arguably more reliant on aid from the eu and security from the u. S. Than ever before, and they are testing that relationship on both fronts. Julia its also upset the eu, who has been wrangling with poland over the power grab we have seen with the judicial system, the suppression of the media here too. , as you point out the financial linkages and dependency, yet domestically they are very popular. Matthew thats right. Their popularity has soared recently. Probably a lot of that has to do with this nationalist fervor they have taken hold of. Transfer payments are up. They have increased the social welfare system for their citizens. You are paid something on the order of 148 per month. If you have more than one child per child. And their economy is doing pretty well, it is growing. A lot of this is on the back of this consumer demand that is fueled by welfare payments. But its been two years since the law and Justice Party has taken over. They have done this grab on the media and the courts, and they are upsetting the Budget Centers in brussels who will start looking at next years budget of the eu, and countries like germany and france are thinking the eu to tie payments will be making to poland to measure rule of law and democratic freedoms. Carol take a step back, because i had no idea this law that was put forth and signed by polands president , making it a criminal offense to suggest poland had any responsibility for the holocaust. Whats the origin of this and the momentum it has created within poland . Matthew well, look, a lot of the atrocities that happened in the holocaust happened in poland. That was where auschwitz was. A lot of the jews killed were polish. A lot of the heroes that israel has gone to Great Lengths to recognize were polish. They did a lot to get some of these people out. But there were also a lot of people who outed the jews who were in hiding, and that is what they are trying to put a stop to. Whether you can say this is part of a broader Antisemitic Movement that is gaining momentum in eastern europe, i dont know that you can necessarily go that far. But its eerily similar to some of the sentiment and nationalist fervor we saw 70, 80 years ago. Carol up next, the governments gamble with a fragile yet devoted homecare industry. Julia and the investing Machine Learning to find a cure for cancer. Carol this is Bloomberg Businessweek. Julia welcome back to Bloomberg Businessweek. Im julia chatterley. Carol and im carol massar. You can also listen to us on radio on sirius xm radio and am 1130 in new york, 106. 1 in boston, and a. M. 960 and the bay area. Julia and in london on dab and in asia on the Bloomberg Radio plus app. In the futures section this week, we take a sobering look at the homecare industry in the united states. Carol the countrys three million home aides are underworked, underfunded, and some are working for free. She is a homecare worker. Its not her real name. I should say that. Many of the workers i spoke with fear retaliation, so on the condition of anonymity, she spoke with me. She let me follow her around for about a year on and off. She is someone who works overnight shifts, 24 hours in a row, and in the case of right now, she works 48 hours in a row in the home of someone who is elderly and disabled. She tends to them in bed, helping them go to the bathroom, cooking for them, cleaning for them. Really all the activities of daily living. Shift begins at 8 00 a. M. And ends at 8 00 a. M. The next day. How much sleep is she getting . Tammy right, the point of the story is a lot of night hours are unaccounted for and unpaid. She works a 48 hours shift and told me she rarely sleeps more than two to three hours, but is not paid for the night. Carol how is that possible . Tammy so, the homecare system, there is a lot of unpaid hours, as you might guess. Carol but shes told to be there . Tammy right, she is told to be there by her employer and the medicaid system. There are contracts that basically say, we are going to assume that workers are eating and sleeping for 11 hours a day, so we are going to pull that out of their paycheck. Julia she gets paid for 13 hours a day, 26 hours out of 48. Tammy thats correct in the case of her shift. The assumption of meal and sleep breaks are unrealistic. I spoke with 20 workers in the course of the year, and nobody said they were ever educated as to how to log hours they were off or say to employers they didnt sleep. Julia how much does she get paid per to do this . Tammy right now, she is making 13. When i first met her, she was making 10. Like most Homecare Workers in the medicaid system, they are making the minimum wage plus a few benefits. Julia whats the law surrounding this . You mentioned this idea of a split shift, so in theory, you would have two people working 12 hours each and its more manageable. Tammy the unpaid nights are the dirty secret of our system. And the law knows that it happens. But again, the presumption is written into contracts that workers have a hard time rebutting. Carol there is a nurse that comes and checks the situation. What did that supervisor tell her . Tammy when you are paid to the medicaid system, there is a nurse that checks in. There really isnt a supervisor. The agency has a representative that sort of looks over her. Theres also an Agency Representative from her union but when she made reports to both, there isnt money in the system and you need to hush, and you need to be there. Julia what about unions . Are there any kind of union protections for women and men in this situation . Tammy so, the main union is a very large Workers Union and they have done an extraordinary job of leading the fight for 15 and organizing lowwage workers. Most Homecare Workers in this space for medicaid in states like new york, progressive states are unionized, but the contracts still write in the possession of taking the breaks. Carol now to a potentially brighter side in the health industry. Julia he is using Venture Capital and Machine Learning to find a cure for cancer. Manus here is reporter carol here is reporter sarah mcbride. Vijay pande is an investor, but unlike a lot of investors, he worked for years as an academic. He is a bit of a polymat. He has a background in several different disciplines, including chemistry and biology, and has he has done a lot of time in Computer Science. That particular combination makes him an unusual venture investor. Carol he has two degrees in civics and he is a coder at the same time. He can bring he sees across disciplines. Although hes only been there for a few years, he is already applying crossthinking to his investment strategy. And its making him a very different, unusual type of investor when it comes to medicine and biosciences. Carol and lets dig a little bit into that in terms of what kind of investor he is in terms of how it comes to the community. We should point out that bloomberg lp is an investor in the firm he works with. Talk to us now about his approach when it comes to b