>> Ted: PHOENIX MAYOR GALLEGO JOINS US AND A LOOK AT HEALTHCARE TRENDS TO BE AWARE OF AND THE LATEST ON BUSINESS SUPPLY CHAIN AND INVENTORY CONCERNS AND THAT'S NEXT ON ARIZONA HORIZON.

WELCOME TO ARIZONA HORIZON.

I'M TED SIMONS.

THE U.S. BORDER PATROL IS REPORTING LOWER NUMBERS OF MIGRANT ENCOUNTERS ALONG THE SOUTHWEST BORDER.

IT'S THE SECOND STRAIGHT MONTH OF SIGNIFICANTLY LOWER NUMBERS.

U.S. CUSTOMS AND BORDER PROTECTION SAYS THE DROP IN MIGRANT COUNTERS IS DUE TO POLICIES ANNOUNCED BY THE BIDEN ADMINISTRATION.

THE AGENCY SAYS INCREASED ENFORCEMENT EASING MIGRATION FOR THOSE WHO QUALIFY.

>>> FLOOD WARNINGS AND ADVISORIES CONTINUE AS YESTERDAY'S STORM MADE FOR HEAVY RAINFALL INCLUDING THIS FLOODED CREEK IN YAVAPAI COUNTY AND THE VERDE RIVER.

RAIN AND SNOW CHANCES WILL CONTINUE AROUND THE STATE ON INTO NEXT WEEK.

>>> ECONOMIC NEWS, FIRST TIME JOBLESS CLAIMS FELL AGAIN LAST WEEK ACCORDING TO THE U.S. LABOR DEPARTMENT WHICH REPORTS TODAY THAT CONTINUING UNEMPLOYMENT CLAIMS DROP.

AS WELL, ECONOMISTS SHOW COMPANIES RIGHT NOW ARE RELUCTANT TO LET GO OF WORKERS INSPITE OF THE RESERVES TO COOL THE ECONOMY AND EASE INFLATION.

>>> HEALTH NOTE, ADVISERS TO THE F.D.A.

SAYS PAXLOVID IS NOT LINKED WITH A RETURN OF COVID SYMPTOMS IN A POSITIVE COVID TEST.

SOME REPORTED REBOUNDS AFTER TAKING THE ANTIVIRAL DRUG AND CLINICAL DATA SHOWS NO CLEAR ASSOCIATION WITH THE COVID REBOUND AND THAT THIS IS A SAFE AND EFFECTIVE TREATMENT.

>>> AND SCIENTISTS HAVE FOUND EVIDENCE OF VOLCANIC ACTIVITY ON VENUS.

THE DISCOVERY COMES FROM INNINGS TAKEN INFROM IMAGESIN THE 1990'S FROM THE MAGELLAN SPACECRAFT AND FIRST EVIDENCE LIFE ON VENUS.

>>> THERE ARE BUILDING URBAN RESILIENCE TO CLIMATE CHANGE AND MAYOR GALLEGO JOINS US NOW.

LET'S TALK ABOUT THESE CONFERENCES AND WE HAD AN ELECTION HERE THIS WEEK AND TALK ABOUT THE RESULTS AND YOUR THOUGHTS ON THOSE RESULTS.

>> WONDERFUL!

THE CITY OF PHOENIX ADMINISTERED THE ELECTION AND I WANT TO CONGRATULATION OUR TEAM ON A GOOD DAY ON DEMOCRACY WHERE PEOPLE WERE ABLE TO PARTICIPATE.

WE ELECTED TWO NEW COUNCIL HEAVIES.

WASHINGTON AND ROBINSON.

KESHA SERVED UNDER TERRY GODDARD AS AN ASSISTANT ATTORNEY GENERAL AND PROTECTED GENERAL AND VICTIMS OF FINANCIAL CRIME AND SHE'S VERY SMART AND HARD WORKING AND WILL REPRESENT DISTRICT 8 INCLUDING THE AIRPORT, PARTS OF DOWNTOWN, SOUTH PHOENIX AND THE FIRST AFRICAN-AMERICAN WOMAN EVER ELECTED TO THE PHOENIX CITY COUNCIL, AND SHE'S MADE HISTORY THERE.

AND THEN WE'RE WELCOMING A FAMILIAR FACE TO THOSE OF US WHO FOLLOW THE CITY OF PHOENIX.

KEVIN ROBINSON, WHO SERVED OUR CITY AS AN ASSISTANT POLICE CHIEF AND SPOKESPERSON AND HAS BEEN AT ARIZONA STATE UNIVERSITY TEACHING COURSES AROUND PUBLIC SAFETY, JUSTICE, RACE, GENDER.

HE WAS ELECTED TO DISTRICT 6 WHICH STRETCHES FROM OFF AUWATUKE AND IT'S PART OF THE FASTEST GROWING PARTY.

>> Ted: KEVIN ROBINSON SUPPORTED WHICH COULD BE SEEN A FAR RIGHT CANDIDATE AND WASHINGTON DEFEATED A FAR LEFT CANDIDATE AND YOU SUPPORTED SOMEONE NOT AN INCUMBENT AND WHY?

>> THEY MOVE THE CITY FORWARD AND WORKING WITH EVERYONE ACROSS THE POLITICAL SPECTRUM.

I WORRY ABOUT GOVERNMENT GETTING TOO STRATIFIED AND PEOPLE NOT TALKING TO THOSE WHO HAVE DIFFERENT OPINIONS AND I TRY TO SUPPORT CANDIDATES WHO WILL WORK WITH A WIDE VARIETY OF SOUTH OF THESOUTH OFTHESTAKEHOLDERS AND LISTEN.

SO MANY ISSUES AT THE CITY CAN BE SOLVED AND WE LOOK FOR CREATIVE SOLUTIONS AND I LOOK FOR PEOPLE WHO CARE ABOUT THE PROCESS AND WHO ARE WILLING TO BOTH LISTEN AND SHARE THEIR IDEAS.

>> Ted: KENKEVIN ROBINSON, A FORMER POLICE OFFICER AND OFFICIAL, THERE'S A LOT OF CONCERN IN THE CITY OF PHOENIX AND THIS SORT OF BUSINESS.

FIRST OF ALL, WERE YOU SURPRISED, A FORMER POLICE OFFICER AND OFFICIAL WAS ELECTED AND BA WILL THAT WHAT WILL THAT MEAN?

>> IF PEOPLE DON'T FEEL SAFE IN THEIR HOMES, WE CAN'T FOCUS ON SO MANY OTHER THINGS THAT YOU AND I OFTEN TALK ABOUT LIKE THE BIOSCIENCE AND KEVIN COMES FROM A DATA-DRIVEN PERSPECTIVE AND TEACHING AT ARIZONA STATE UNIVERSITY FOR YEARS AND SO HE UNDERSTANDS THE BEST PRACTICES FROM ACROSS THE COUNTRY AND CAN COME WITH GOOD DATA.

HE TEACHES PROFESSIONALLY ON TOPICS DIFFICULT FOR SOME PEOPLE TO UNDERSTAND SUCH AS RACE AND PUBLIC SAFETY, BUT WE HAVE TO TALK ABOUT THEM IF WE ARE GOING TO IMPROVE AS THE CITY OF PHOENIX.

SO I THINK HE BRINGS THE RIGHT PERSPECTIVE TO MAKE SURE THAT WE BECOME A SAFE CITY THAT IS AS FAIR AS POSSIBLE AND TRANSPARENT AS POSSIBLE.

I THINK HIS LIVED EXPERIENCE AS A POLICE OFFICER, AS WELL AS AN ACADEMIC IS REALLY COMING AT A PERFECT TIME THAT FACE OUR COMMUNITY.

>> Ted: LET'S TALK ABOUT THESE TWO CONFERENCES.

THE U.N. CONFERENCE IN NEW YORK.

WHAT IS THAT ALL ABOUT?

A GLOBAL CONVENING AROUND WATER AND BRINGS THE BEST MINES FROM COUNTRIES ALL OR THE WORLD TOGETHER AS WELL AS LOCAL LEADERS.

THE MAYOR OF NEW YORK CITY AND I ARE THE TWO MAYORAL DELEGATES AND I WILL GET A CHANCE TO PRESENT SOME OF THE WORK WE'RE DOING ON WATER CONSERVATION IN THE CITY OF PHOENIX.

I THINK THAT'S IMPORTANT FOR TWO REASONS.

WE'RE IN A MAJOR DEBATE THAT HAS INTERNATIONAL IMPLICATIONS AROUND THE COLORADO RIVER, A RIVER WE SHARE WITH MEXICO.

WE NEED TO PROVE THAT WE USE WATER WISELY AND THAT WE MAKING THE RIGHT INTELLIGENT DECISIONS TO BE TRUSTED WITH THAT SCARCE SUPPLY.

BUT I WANT TO SHARE OUR IDEAS AND GET FEEDBACK FROM SOME OF THE BEST MINDS WHO WORK ON WATER ISSUES AND THAT CAN ONLY MAKE US STRONGER.

>> Ted: YOU ARE A PART EFFORT 50 LEADER HOME COALITION AND WHAT'S THAT ALL ABOUT?

>> I SERVE AS THE PUBLIC SECTOR COCHAIR OF THE 50 LEADER COALITION WHICH GETS ITS NAME THAT CAPE TOWN RESIDENTS USED WHEN THEY WENT THROUGH THEIR TERRIBLE DROUGHT AND HAD TO RATION WATER.

RESIDENTS IN CAPETOWN DRAMATICALLY REDUCED THEIR WATER USE AND WE LEARN LEARNED A LOT FROM WHAT INVESTMENTS AND TECHNOLOGY THEY MADE.

THAT COALITION TRIES TO MAKE CONSERVATION IRRESISTIBLE AND WE TRY TO DEVELOP PRODUCTS AND TOOLS AND EASIER FOR YOU TO USE AND LESS WATER WHILE NOT MAKING MAJOR SACRIFICES TO THE BASICS AND LIFESTYLE.

WE'LL BE ANNOUNCING SOME INITIATIVES INCLUDING ONE BASED IN PHOENIX WHERE WE'RE DOING CUTTING-EDGE RESEARCH AND BRINGING TOGETHER COMPANIES FROM PROTECTER AND GAMBLE TO KOHLER TO SEE WHAT THE NEXT GENERATION OF WATER WILL BE.

>> Ted: SOUNDS LIKE A CHANGING OF THE NARRATIVE THERE.

>> WE'RE DOING GREAT THINGS ON WATER CONSERVATION AND SOME STAKEHOLDERS ON THE COLORADO RIVER DEBATE WHO WANT TO FRAME US DIFFERENTLY.

PART OF MY JOB IS TO MAKE SURE WE DO OUR ABSOLUTE BEST TO PROTECT OUR WATER SUPPLY AND ALSO TO SHARE OUR SUCCESS STORIES AND THE INNOVATIVE WORK.

>> Ted: THE UNIVERSITY OF PENNSYLVANIA YOU'RE FAMILIAR WITH, IT'S BUILDING URBAN RESILIENCE TO EXTREME HEAT AND IS THIS A PERFECT PRACTICES?

>> PHOENIX IS THE FIRST CITY IN THE UNITED STATES TO HAVE AN OFFICE THAT WORKS FULL-TIME ON HEAT RESPONSE AND MITIGATION AND WE HAVE DEVELOPED GREAT TOOLS RANGING FROM HOW YOU BUILD AND DESIGN BUILDINGS AND ORIENT STREETS TO SOME OF THE THINGS WE'VE TALKED ABOUT AROUND TREE PLANTING AND COOL PAVEMENT WE WE WANT TO SHARE WHAT WE'RE DOING AND UNDERSTAND THE BEST RESEARCH AND TOOLS TO MAKE SURE THAT WE HAVE A SAFER SUMMER.

>> Ted: THESE IDEAS, HOW MUCH ARE THEY -- STICK TO PHOENIX AND HOW MUCH ARE THEY PUT IN PRACTICE?

>> ONE OF THE IDEAS I'VE BEEN ASKED TO TALK ABOUT IS THE COOL CORRIDORS, PLANTING TREES IN AREAS TRAFFICKED AROUND LIBRARIES AND SCHOOLS AND INVESTING IN DIFFERENT PAVEMENT TECHNOLOGY FOR STREETS.

THIS CAN COOL OUR COMMUNITIES TEN DEGREES.

IT WON'T MAKE PHOENIX CHILLY IN THE SUMMER, BUT IT CAN MAKE A NOTICEABLE DIFFERENCE AND MAKE IT MORE COMFORTABLE TO BE OUTSIDE.

WE'VE ALSO HAD COMPANIES IN THE BUILDING SECTOR THINKING ABOUT HOW YOU PICK MATERIALS AND DESIGN BUILDINGS AND HOW YOU BUILD CITIES AND WE WANT TO SHARE OUR SUCCESS WITH OTHER COMMUNITIES.

>> Ted: ON BOTH CONFERENCES, WHAT DO YOU PLAN TO COME HOME WITH AND WHAT DO YOU WANT TO COME HOME WITH AND WHAT INFORMATION?

>> FIRST, WE HOPE TO LEARN THE BEST PRACTICES FROM THE TOP PRACTITIONERS ALL OVER THE WORLD AND INTERESTED IN COMPANIES AND NONPROFITS THAT HAVE SOLUTIONS.

WE WANT PHOENIX TO BE THE LEADER IN SOLVING THESE AND ATTRACT THE BEST MINDS AND IDEAS AND WE HOPE TO SEND OUT A STRONG MESSAGE THAT PHOENIX IS A GREAT PLACE IF YOU WANT TO DO INNOVATIVE WORK AND HEAT.

WE UNDERSTAND THE STAKES ON THESE ISSUES AND WILLING TO PARTNER TO FIND THE SOLUTIONS.

>> Ted: PHOENIX MAYOR GALLEGO, THANK YOU.

>> THANK YOU FOR HAVING ME.

>> Ted: A LOOK AT IMMERGING TRENDS IN HEALTHCARE.

WE WELCOME ATTORNEY HEATHER MACRE.

INSURANCE TRENDS AND WHAT ARE WE ARE WE SEEING?

>> HEALTHCARE COSTS ARE GROWING TO THE PRE-PANDEMIC LEVELS AND WE'RE SEEING AN INCREASED GOVERNMENT VIEW OF THE TRANSPARENCY AND PARTICULARLY IN THE PHARMACY AND PRESCRIPTION AREAS AND HOPEFULLY, WE CAN DOWNERCOUNTER THIS WITH PRECIPITATION DRUG PRICING.

>> Ted: WHAT DOES THAT MEAN AND WHAT IS INVOLVED?

>> WHAT WE'RE SEEING IS MORE FEDERAL OVERSIGHT ON THE PRICES OF PRECIPITATION DRUGS AS WELL AS PRICE INCREASES IN PRESCRIPTION DRUGS.

IN FACT, JUST YESTERDAY, WE HEARD PRESIDENT BIDEN TALK ABOUT THE FACT THAT THE MEDICARE PLANS ARE CLOSELY MONITORING THIS AND TAGGING INCREASES IN PRICES TO INFLATION AS OPPOSED TO ALLOWING PRICES TO GO UP.

HE'S BEEN TALKING ABOUT LIMITING COSTS FOR SENIORS TO $2,000 PER YEAR NO MATTER WHAT TYPE OR HOW MANY THEY'RE TAKING.

I THINK WE CAN EXPECT TO SEE THIS TRICKLE DOWN, QUITE FRANKLY, INTO THE INSURANCE PLACE.

A LOT OF THE TRENDS WE SEE WITH MEDICARE AND THE FEDERAL GOVERNMENT TEND TO TO DO THAT.

>> Ted: I KNOW TELEHEALTH, THAT WHOLE INDUSTRY WENT SIDEWAYS WITH THE PANDEMIC.

HOW DID IT COME OUT OF THE PANDEMIC AND ARE THERE PRIVACY CONCERNS?

THERE'S GOT TO BE.

>> TELEHEALTH IS A STRONG SECTOR OF THE HEALTH INDUSTRY AND WITH THE PUBLIC HEALTH CRISIS ENDING AND IT LOOKS LIKE THE PUBLIC HEALTH CRISIS IS GOING TO END ON MAY 11th OF THIS YEAR, THAT'S WHAT THE FEDERAL GOVERNMENT HAS SIGNALED TO US AND WITH THAT ENDING, WE'LL SEE LESS FLEXIBILITY WITHIN TELEHEALTH AND THERE WERE A LOT WAIVERS PUT INTO PLACE THAT WOULD ALLOW CROSS-STATE TELEHEALTH AND ALLOWS THEM TO USE PLATFORMS NOT FULLY HIPPA CLIENT.

WE'LL SEE THAT GO AWAY AND A LOT HAVE MADE THE SHIFT THROUGHOUT THE PANDEMIC IN THESE WANING TIMES TO USE HIPPA COMPLIANT PLATFORMS AS OPPOSED TO PICKING UP THE TELEPHONE OR OVER SOMETHING LIKE A FACETIME PLATFORM.

THAT'S FINE IN AN EMERGENCY.

BUT NOW THERE'S ENFORCEMENT IF DOCTORS ARE USING THEM TO PROVIDE TELEHEALTH.

>> Ted: INCREASED ENFORCEMENT OR EXPANDED?

>> I THINK IT'S A LITTLE BIT OF BOTH?

>> WE HAVE THAT IN TERMS OF PRIVACY AND I THINK THAT'S AN EXPANSION IN ENFORCEMENT THAT WE'VE BEEN ALLOWING CROSS STATE TELEHEALTH.

IF YOU'RE LICENSED IN ONE STATE, WE'VE BEEN ALLOWING IN OTHER STATES JUST TO MEET NEEDS DURING THE PANDEMIC SINCE THERE'S BEEN SO MUCH STRAIN ON THE SYSTEM.

AGAIN, WITH US COMING OUT OF THE PUBLIC HEALTH EMERGENCY, IT'S GOING TO GO BACK TO SEE IT WHERE YOU'RE LICENSED.

>> Ted: MENTAL HEALTH AND THE PANDEMIC AND A LITTLE LIGHT ON THIS AND ATTENTION HERE, BUT DID IT TRANSFER OVER TO INSURANCE COVER AND IT IS TRANSFERRING TO INSURANCE COVERING?

>> WE'RE STARTING TO SEE MORE MENTAL HEALTH PARODY AND FEDERAL LAWS LOOKING TO ENSURE THAT AND WE HAVE ACTS THAT ARE DEALING WITH PARODY FOR MENTAL HEALTH PAYMENTS AND SUBSTANCE USE DISORDER PAYMENTS.

THE FEDERAL GOVERNMENT HAS SET ASIDE $125 MILLION IN AN ENFORCEMENT FUND TO MAKE SURE THESE CLAIMS ARE PAID ON PAR WITH PHYSICAL HEALTH CLAIMS.

THE PROBLEM HERE IS THAT IN MANY AREAS INCLUDING ARIZONA, WE HAVE A LOT OF DEFICITS IN MATERIALS OF MENTAL HEALTH PROVIDERS POINT SO FOR A LOT OF PATIENTS, WE'VE SEEN AN INCREASE THE INCREASED FOCUS ON MENTAL HEALTH AND IT'S GREAT IT'S BEING PAID ON PARODY WITH PHYSICAL HEALTH AND WE HAVE A DIRTH OF PROVIDERS.

>> Ted: SOMETHING THAT CAN GIVE YOU A MENTAL HEALTH PROBLEM IS BILLING.

[ Laughter ] >> Ted: IS IT CHANGING AND EVOLVING AND GETTING PEOPLE'S ATTENTION?

>> EVOLVING AND GETTING PEOPLE'S ATTENTION.

WE TALKED ABOUT THIS A FEW MONTHS AGO, HOW WE HAVE A NEW, NO SURPRISING SURPRISEs BE'S ACT.

THERE'S A PAGE IN ADDRESSING YOUR RIGHTS UNDER THE NO SURPRISE'S ACT AND MORE ENFORCEMENT OF THAT.

SOME OF THE ENFORCEMENT DELAYS WERE DUE TO THE FEDERAL LAWSUITS DEALING WITH THE STYLE OF ARBITRATION THAT WOULD COME OUT OF,.

IF YOU HAD A NO SURPRISE BILL, YOU WERE SENT TO AN ARBITRATION.

MOST OF THE LAWSUITS HAVE BEEN RESOLVED AND WE'RE MOVING INTO A PLACE WHERE THERE'S AN ACTIVE ENFORCEMENT MECK MECHANISM.

>> Ted: SPECIAL ENROLLMENT AND IT SOUNDS LIKE -- IT'S GETTING BETTER.

>> Ted: THIS IS THE TIME TO DO IT, BUT THE IMPACT ON MARKETPLACE PLANS, ARE THEY EVOLVING BECAUSE OF THIS?

>> VERY MUCH SO.

SO WE USED TO HAVE A VERY -- YOU KNOW, I'M GOING TO SAY A VERY INVOLVED PROCESS IF YOU WERE GETTING INTO A MARKETPLACE PLAN AND YOU HAD TO GO THROUGH A WHOLE PROCESS TO SHOW THAT YOU NEEDED THE PLAN AND NOW THEY ARE STREAMLINING THAT AND IF YOU HAD WHAT WOULD BE A TRADITIONAL CAUSE TO CHANGE INSURANCE, A BIRTH, A DEATH, A DIVORCE, NOW YOU'RE GOING TO BE ABLE TO USE A STREAMLINE EVENTS AND IT ALLOWS YOU TO CHANGE A MARKETPLACE PLACE.

IF YOU USE COVERING, YOU'LL HAVE TO GO THROUGH THE NORMAL ENROLLMENT PROCESS WHICH TAKES LONGER AND THERE WILL BE A STREAMLINED PROCESS.

THIS IS BRINGING THE MARKETPLACE PLAN TO SOMETHING CLOSER TO WHAT MOST OF THE PRIVATE INSURANCE INDUSTRY DOES.

I THINK MOST OF US ARE FAMILIAR IF YOU HAVE A BIRTH, DEATH, DIVORCE, YOU CAN CHANGE THAT PLAN.

THIS BRINGS THAT INTO ALIGNMENT.

>> Ted: SAME KIND OF EASE OR EASING OF RESTRICTIONS OR JUST MAKING IT EASIER TO APPLY WHEN YOU'RE A NEW ACA PATIENT.

>> CORRECT, A LOT EASIER TO APPLY AND YOU CAN DO AN OUT OF STATION INSTEAD OF GOING THROUGH THIS ENTIRE PROCESS TO SHOW WHAT'S HAPPENED.

>> Ted: FOR CHANGES AND NEW ENROLEEES.

>> RIGHT.

>> Ted: WE HAVE ABOUT 30 SECONDS AND HOW MUCH OF THIS IS DUE TO THE COVID AFTERMATH?

>> QUITE A BIT.

COVID TAUGHT US WHAT WORKS IN THE HEALTH SYSTEM AND WHAT DOESN'T.

WHETHER IT'S TELEHEALTH OR TRANSPARENCY AND PRESCRIPTION DRUGS OR EASIER OR HARDER TO GET ON AND OFF INSURANCE PLANS IS TRYING TO RESPOND TO THE CONCERNS WE SAW DURING THAT TIME.

>> Ted: HEATHER MACRE, GREAT INFORMATION AND THANK YOU SO MUCH FOR JOINING US.

>> THANK YOU.

>> Ted: ECONOMIC NUMBERS BY WAY OF THE LOGISTIC'S MANAGER INDEX SHOW ASPECTS OF INVENTORY AND CONCERNS.

WE WELCOME ECONOMIST DALE ROGERS, OUR GO-TO GUY.

>> THE MAYOR AND THEN A HEALTHCARE EXPERT AND OLD PROFESSOR.

>> Ted: AN OLD PROFESSOR WHO KNOW HIS BUSINESS WHEN IT COMES TO THIS.

LET'S TALK ABOUT THIS.

>> IT'S A MONTHLY THING I DO WITH YOUNGER FACULTY FROM OTHER UNIVERSITIES AND EVERY MONTH, WE LOOK AT INVENTORIES, WAREHOUSING AND TRANSPORTATION BECAUSE THEY ACT AS A LEADING INDICATER OF THE ECONOMY.

BEFORE YOU SELL SOMETHING BEEN YOU, YOUHAVE TO PUT IT ON A TRUCK IN A WAREHOUSE.

>> Ted: NEW REPORT SHOWS MONTHLY BACK-TO-BACK.

>> TRANSPORTATION, WHICH IS USUALLY THE CA CANARY IN THE COALMINE.

YOU CAN'T BUILD A WAREHOUSE OVERNIGHT.

TRANSPORTATION PRICES ARE DECREASING AT THE FASTEST PRICE AND IN 2022, THE COST OF SHIPPING A CONTAINER FROM SAY, SHANESHANGHAI TO LAST 25,000 TO 3,000 AND RIGHT NOW, IT'S BELOW THREE AND IN SOME CASES EVEN 7 $700 TO SHIP A CONTAIN FROM SHANGHAI HERE.

DEMAND IS GOING UP AND TRANSPORTATION PRICES ARE GOING DOWN.

>> Ted: WHERE THE CONTRACTION?

>> SEVERAL REASONS AND SO THE SERVICE SECTOR OF THE U.S. ECONOMY IS GREAT.

THE PRODUCT SECTOR IN CERTAIN AREAS IS NOT.

FOR INSTANCE, OUR FRIENDS AT D ELL WILL GO THROUGH A BIG REORGANIZATION BECAUSE EVERYBODY BOUGHT COMPUTERS DURING THE PANDEMIC AND PULLED DEMAND FORWARD AND WE'RE NOT SEEING THAT NOW.

IT DEPENDS WHAT KIND OF PRODUCTS.

THE SUPPLY CHAIN SEEMS TO BE HEALED AND THINGS ARE RUNNING NORMALLY AND THE AR ABHORATION OF THE PANDEMIC AND NOW HOW DO WE DO THINGS AFTER THAT.

>> Ted: THE AUTO MARKET AND THE SAME MODEL, USED AND NEW AND THE USED CAR SEEMS MORE EXPENSIVE THAN THE NEW CAR AND HOW LONG WILL THAT LAST?

>> I DON'T THINK LONG.

SOME OF THE CAR COMPANIES MADE HUGE MISS MISTAKES IN MANAGING SPINE SUPPLY CHAIN ISSUES.

FORD BELIEVES THEY LOST $100 MILLION LOST OF SALES LAST YEAR BECAUSE THEY DIDN'T HAVE SOME THINGS THEY NEEDED.

AND SO AS THOSE THINGS COME BACK ON, WE'LL HEAD BACK TO NORMALCY.

>> Ted: SO WE HEAD BACK TO NORMALCY, WHEN, QUARTER TWO?

WE HAVE THE NEXT HOLIDAY SHOPPING COMING UP IN A FEW MONTHS.

>> THERE'S A LOT OF US THAT THINK FOURTH QUARTER THIS YEAR IS GOING TO BE A TOUGH QUARTER AND SO, AS WE GET TO THE END OF THE FALL, IT LOOKS LIKE THE FED IS GOING TO KEEP RAISING THE INTEREST RATE.

IT PROBLEM HAS BEEN THE REASON FOR INFLATION IS BROKEN SUPPLY CHAINS, BUT THE FED DOESN'T HAVE TOOLS TO DEAL WITH BROKEN SUPPLY CHAINS.

ALL THEY CAN DO IS RAISE OR LOWER THE INTEREST RATE AND THAT DOESN'T REALLY HELP US WHERE WE ARE.

IT JUST DAMPENS DEMAND WHICH IS WHAT YOU DON'T NECESSARILY WANT TO DO OVERALL.

SO WE'RE GOING TO SEE THE FED'S ACTION CONTINUE TO BITE AND MY GUESS IS MIDDLE OF 2024, THINGS WILL BE BACK TO NORMAL.

>> Ted: INTEREST RATES, ARE THEY A REASON WHY THAT $25,000 CONTAINER IS NOW AT 700 BUCKS.

>> DURING THE PANDEMIC, EVERYBODY JUMPED INTO THE SHIPPING TRADE AND GETTING SHIPS OUT OF DRY DOCK AND NOW YOU HAVE OVERCAPACITY AND THAT WILL GET SORTED OUT THERE.

>> Ted: BACK-TO-SCHOOL SHOPPING IN A FEW MONTHS AND HOLIDAY SHOPPING MAYBE MORE THAN A FEW MONTHS AND THOSE WHO SHOULD BE OK AND THE FOURTH QUARTER MAY BE A TOUGHY?

>> THE FED'S INTEREST RATES START TO BITE.

>> Ted: EMPLOYMENT NUMBERS ARE STRONG AGAIN.

>> AND GOOD.

>> Ted: AND NOT GOOD FOR THE FEDS.

>> AND I DON'T THINK IT'S IN THE U.S., BY THE WAY.

I JUST HEARD FROM ONE OF MY COLLEAGUES IN HONG KONG THAT THEY'RE GUESSING FOURTH QUARTER WILL BE TOUGH OVER THERE.

>> Ted: THIS REPORT, THE LATEST REPORT AND WHAT DOES IT SAY ABOUT THE OVERALL ECONOMY?

>> IT SAYS THERE'S MEDIOCRE GROWTH AND STILL MOSTLY GROWTH AND WE'RE SEEING REAL DECAY IN TRANSPORTATION AND STILL HARD TO FIND WAREHOUSE SPACE IRONICALLY.

WE'VE NEVER HAD A TIME COMPARED TO THE LAST THREE YEARS WHERE WAREHOUSE CAPACITY WAS LOWER.

SO CAPACITY IS STILL GROWING BUT IT'S GROWING SLOWER THAN IT WAS A FEW MONTHS AGO, TWO YEARS AGO, ET CETERA.

>> Ted: QUICKLY, ARIZONA IS NICELY PLACED AS FAR AS WAREHOUSE CAPACITY IS CONCERNED?

>> WE'RE BRINGING A LOT OF CAPACITY ONLINE, BUT HONESTLY, IT'S STILL NOT ENOUGH.

>> Ted: WOW!

DALE ROGERS, WATCH OUT FOR THE QUARTER FOUR.

>> GREAT TO BE WITH YOU.

>> Ted: I'M TED SIMONS AND THANK YOU SO MUCH FOR JOINING US AND YOU HAVE A GREAT EVENING!