WEBVTT - Citi Bonuses and Inflation Worries 0:00:01.800 --> 0:00:04.440 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:04.440 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanabek. We're here every day bringing 0:00:07.280 --> 0:00:09.799 you the latest news from the world of business and finance, 0:00:09.840 --> 0:00:13.600 plus technology, politics, economics, all harnessing the power of Business 0:00:13.640 --> 0:00:17.119 Week reporters and editors, not to mention our journalists and 0:00:17.120 --> 0:00:19.600 analyst in more than one and twenty countries. You can 0:00:19.640 --> 0:00:23.200 download Bloomberg Business Week on iTunes, SoundCloud, or Bloomberg dot Com. 0:00:23.400 --> 0:00:25.120 You can also listen to our radio show at two 0:00:25.160 --> 0:00:28.360 pm Eastern Time on Bloomberg Radio, or watch us on YouTube. 0:00:28.400 --> 0:00:32.479 Search Bloomberg Global News. So shares of Quest Diagnostics they're 0:00:32.560 --> 0:00:36.120 up roughly almost twenty this year. Company two out with 0:00:36.159 --> 0:00:38.480 some news today about completion of what it is calling 0:00:38.560 --> 0:00:41.400 a next generation lab facility in my own home state 0:00:41.400 --> 0:00:43.200 of New Jersey, which is where the company is based. 0:00:43.320 --> 0:00:45.760 Here to tell us more about the business outlook is 0:00:45.760 --> 0:00:49.160 Steve Roskowski. He's chairman, president CEO Quest Diagnostics. He joins 0:00:49.240 --> 0:00:52.480 us on the phone from ce Caucus, New Jersey. Hey Steve, 0:00:52.600 --> 0:00:54.200 nice to have you here with Tim and myself. How 0:00:54.240 --> 0:00:57.120 are you. I'm doing wealth Care all. Thanks for having 0:00:57.160 --> 0:00:59.560 us well it's great to have you here. Um let's 0:00:59.560 --> 0:01:01.360 talk a little about business before we get into your 0:01:01.400 --> 0:01:05.559 new facility. You did boostlook on the top and bottom 0:01:05.600 --> 0:01:10.240 lines because of stronger testing volumes, Delta increasing testing demand. 0:01:10.280 --> 0:01:12.839 That's certainly one of the big factors. How is business today? 0:01:12.880 --> 0:01:15.440 Are you starting to see that trail off as we 0:01:15.640 --> 0:01:18.560 see um us kind of get maybe a little bit 0:01:18.600 --> 0:01:22.760 more control of the Delta variant. Yeah, So, pierrol Is, 0:01:22.800 --> 0:01:28.280 as we entered twenty one, we expected that our COVID 0:01:28.360 --> 0:01:32.840 volumes would come down in the first half, and what 0:01:33.040 --> 0:01:37.280 we did see was exactly that. But then in the 0:01:37.319 --> 0:01:40.160 month of June we started to see it pick up 0:01:40.680 --> 0:01:45.399 in response to the Delta variant, and we updated our 0:01:45.520 --> 0:01:49.600 expectation of the back half for COVID and we said 0:01:49.600 --> 0:01:51.920 at the low end of our outlook that we would 0:01:51.960 --> 0:01:55.800 expect about forty tests per day in the back off 0:01:56.040 --> 0:01:59.200 of Is that a lot? Give us some perspective. I 0:01:59.200 --> 0:02:02.400 have no idea as a huge give an idea of scale. 0:02:02.920 --> 0:02:06.560 Back in the the early days of one, we're doing 0:02:06.600 --> 0:02:12.800 about a hundred thousand tests per day, so we were 0:02:13.720 --> 0:02:17.160 down considerably coming out of the second quarter, down to 0:02:17.280 --> 0:02:20.760 about thirty forty thousand tests per day, and that number 0:02:20.800 --> 0:02:26.520 has come up and we've been approaching thousand tests per day, 0:02:27.000 --> 0:02:30.280 so some portion of the third quarter. But we do 0:02:30.400 --> 0:02:34.600 expect as we start to see the infection rates coming 0:02:34.639 --> 0:02:40.360 down and typically are testing volumes following infection rates, that 0:02:40.360 --> 0:02:42.840 that will slow somewhat in the back half of the 0:02:42.880 --> 0:02:47.080 second half. So so we're saying higher than expected volumes 0:02:47.160 --> 0:02:49.960 as we entered the year for COVID and we're right 0:02:49.960 --> 0:02:52.120 in the middle of it in the third quarter. We 0:02:52.480 --> 0:02:56.680 will now its earnings in October, and we do expect 0:02:56.960 --> 0:02:59.200 that that number will come down and back after give 0:02:59.240 --> 0:03:02.000 us that low end of the outlook of forty tests 0:03:02.000 --> 0:03:05.320 per day. See where does that number stabilize. Where is 0:03:05.360 --> 0:03:08.040 that number a year from now. Well, it's a good 0:03:08.120 --> 0:03:11.800 question because we're watching, you know, the delta variant and 0:03:11.800 --> 0:03:17.440 and also its relationship UH to the vaccines, relationship to 0:03:18.200 --> 0:03:21.960 nactual immunity, what's happening elsewhere in the in the world. 0:03:22.760 --> 0:03:25.760 And when we had our investor day in the spring, 0:03:26.480 --> 0:03:30.240 what we said is that, yes, we believe COVID will 0:03:30.280 --> 0:03:34.560 slow down this year, but it's not going away. We're 0:03:34.600 --> 0:03:38.040 gonna be seeing this in twenty two and beyond we 0:03:38.080 --> 0:03:40.480 will we believe it's going to become more flu like 0:03:41.080 --> 0:03:43.280 and that's going to be you know, a portion of 0:03:43.320 --> 0:03:47.880 our testing portfolio going forward, and we do believe it's 0:03:48.000 --> 0:03:51.400 for our diagnostic testing to determine where the COVID or 0:03:51.400 --> 0:03:55.480 not and we run primarily the PCR test, which is 0:03:55.480 --> 0:03:59.360 the gold standard, but will also include the whole portfolio 0:03:59.400 --> 0:04:01.480 that we have brought out and will continue to build 0:04:01.480 --> 0:04:05.440 down around strology testing, which tests for the antibodies to 0:04:05.640 --> 0:04:09.360 determine whether the vaccine is working or whether you have 0:04:10.360 --> 0:04:13.240 immunity in some form. And what's happened to the menu 0:04:13.320 --> 0:04:16.839 over time. Hey see, if you have an amazing amount 0:04:16.880 --> 0:04:20.840 of data, given what you do, you understand where hotspots 0:04:20.839 --> 0:04:25.000 are emerging. You understand which areas that you have testing 0:04:25.040 --> 0:04:28.240 facilities in or you get specimens from, are seeing a 0:04:28.360 --> 0:04:31.840 rise in cases. What do you know before regulators know? 0:04:31.960 --> 0:04:33.800 What do you know before public health officials know? And 0:04:33.800 --> 0:04:36.719 how do you communicate what you find out to them? Yeah, 0:04:37.000 --> 0:04:41.360 so we have we have a reporting requirement for all 0:04:41.400 --> 0:04:46.159 infectious diseases that we had in place before COVID, and 0:04:46.200 --> 0:04:50.640 whether it's HIV or hepatitis B or C. We had 0:04:50.640 --> 0:04:53.280 to report that data to public health officials and that's 0:04:53.640 --> 0:04:57.159 around the country in every state. And actually we we 0:04:57.320 --> 0:05:01.000 reported into about eight hundred different look patients throughout the 0:05:01.040 --> 0:05:04.320 country all our results. So when we have a positive 0:05:04.360 --> 0:05:08.960 PCR test for COVID, we provide that information to public 0:05:09.000 --> 0:05:12.520 health officials, so they pretty much have that information at 0:05:12.560 --> 0:05:14.919 the same time that we're seeing and once we resulted 0:05:15.000 --> 0:05:19.560 because we reported on a daily basis to these reporting entities. 0:05:20.240 --> 0:05:23.599 So tell us about this new testing facility in New Jersey, 0:05:23.640 --> 0:05:25.680 my home state of New Jersey. Um, what can you 0:05:25.720 --> 0:05:27.960 tell us about it? And I'm curious about Um, it 0:05:28.040 --> 0:05:31.120 was in the works from what I understand ahead of COVID, 0:05:31.240 --> 0:05:33.960 but it sounds like you picked up, ramped up getting 0:05:34.000 --> 0:05:36.520 it done. What does it mean in terms of your productivity, 0:05:36.560 --> 0:05:39.880 ability to process, diagnostic to taste testing, and what does 0:05:39.880 --> 0:05:43.800 it mean ultimately for top and bottom lines. Yeah, we 0:05:43.600 --> 0:05:47.479 were excited about it, So, Carol, we we have been 0:05:47.520 --> 0:05:52.320 on a march to continuously improve our business and we've 0:05:52.360 --> 0:05:55.880 been as a company working on two strategies. One us 0:05:55.880 --> 0:06:00.520 to continue to build programs that support accelerating and growth, 0:06:01.200 --> 0:06:04.880 and that's underpinned with a belief that our operations need 0:06:04.920 --> 0:06:08.800 to continue to get stronger, and we call that operational excellence. 0:06:08.839 --> 0:06:11.719 And as part of that, we've been striving for three 0:06:11.800 --> 0:06:17.840 percent productivity improvement per year and our view on productivity 0:06:17.839 --> 0:06:21.520 improvement and it does not come without improvement in quality 0:06:21.560 --> 0:06:24.719 and service performance. And so as part of that program, 0:06:25.240 --> 0:06:31.720 we actually invested in the new facility in Clifton, New Jersey. UH. 0:06:31.880 --> 0:06:35.680 It affords us an opportunity to consolidate a number of 0:06:35.680 --> 0:06:40.719 our smaller facilities into one larger facility. It also allows 0:06:40.800 --> 0:06:44.160 us to harmonize our processes and put in common systems 0:06:44.200 --> 0:06:47.800 across the company, and it also allows us to put 0:06:47.800 --> 0:06:52.960 in new automation and in testing capacity. Tasty Um, you're 0:06:53.000 --> 0:06:58.240 telling us about this new UH next generation lab facility facility. 0:06:58.279 --> 0:07:00.440 You guys use the word next generation. What makes it 0:07:00.480 --> 0:07:04.400 next generation? Yeah, Carol, we're excited about it in many 0:07:04.440 --> 0:07:07.080 different ways. First of all, it's one of our largest 0:07:07.120 --> 0:07:11.600 facilities in the country. It's going to serve about seven states, 0:07:11.960 --> 0:07:16.520 will serve about forty million people, give us capacity of 0:07:16.640 --> 0:07:19.400 about three hundred thousand tests per day, so it's big. 0:07:20.080 --> 0:07:24.680 And secondly, is because of the automation and and the 0:07:24.760 --> 0:07:28.920 ability for us to do more integrated testing. It's going 0:07:28.960 --> 0:07:31.680 to allow us to even improve the quality and the 0:07:31.720 --> 0:07:36.760 service performance and productivity that we have today. So we're 0:07:36.840 --> 0:07:41.600 quite excited about it coming online. We invested about two 0:07:41.920 --> 0:07:45.880 fifty million dollars in this project, and actually we started 0:07:45.920 --> 0:07:48.840 a little bit of the construction before the pandemic, but 0:07:48.920 --> 0:07:52.840 it was just remarkable how we completed it despite the pandemic, 0:07:52.880 --> 0:07:54.920 and it's up and running today, so we're very proud 0:07:54.960 --> 0:07:58.000 of that. Hey, how much of it are increasingly Is 0:07:58.040 --> 0:07:59.840 it helped me out here? I'm not an expert on this, 0:08:00.080 --> 0:08:03.040 you are. How much is automated? Is all of it automated? 0:08:05.280 --> 0:08:09.480 That not entirely. If you go into a lab environment 0:08:09.480 --> 0:08:11.800 and you still see a lot of people in a 0:08:11.840 --> 0:08:16.360 lot of manual labor. But what's happened over time, Carol, 0:08:16.520 --> 0:08:20.920 is some processes have been automated by some of our suppliers. 0:08:21.320 --> 0:08:25.040 We actually have over two hundred suppliers that provide equipment 0:08:25.120 --> 0:08:29.280 in capabilities into this laboratory. So they do some consolidation 0:08:29.280 --> 0:08:32.360 and automation, and then we bring down bring together some 0:08:32.440 --> 0:08:36.240 of those work cells. Because you're doing multiple tests on 0:08:36.480 --> 0:08:41.120 a common specimen. So when you get inside of a laboratory. 0:08:41.240 --> 0:08:45.240 You have a common collection area that you sort out 0:08:45.240 --> 0:08:47.560 those specimens and then you put those in each of 0:08:47.600 --> 0:08:49.880 their work cells. Each of those work celles have become 0:08:49.920 --> 0:08:52.600 more automated over time, but I'll share with you, even 0:08:52.640 --> 0:08:54.400 though we're very proud of what we've done here, there's 0:08:54.440 --> 0:08:58.439 more of that work we believe we can do going forward. Employees, 0:08:58.559 --> 0:09:02.320 are you hiring more? Are you finding it? We brought 0:09:02.360 --> 0:09:05.600 to be hiring about a thousand people. Some of these 0:09:05.640 --> 0:09:09.400 people came from our existing UH facilities. We had a 0:09:09.440 --> 0:09:13.160 large facility interior Borrow that we consolidd over to Clifton, 0:09:13.960 --> 0:09:16.800 So we're happy that those people will join us in Clifton. 0:09:16.840 --> 0:09:18.920 But we're also bringing in some more people as well, 0:09:19.000 --> 0:09:22.439 So about a thousand people. Hey, Steve, I'm wondering about 0:09:22.559 --> 0:09:25.680 home testing. There's been a big movement during the pandemic 0:09:26.000 --> 0:09:28.839 when it comes to home diagnostic testing, and indeed, the 0:09:28.880 --> 0:09:31.840 Biden administration said recently we'd spend a billion dollars to 0:09:31.880 --> 0:09:35.959 boost the supply of rapid COVID tests. I'm wondering how 0:09:36.080 --> 0:09:38.800 you think about the rising home testing now we've seen 0:09:38.800 --> 0:09:41.960 not just for COVID but for other elements too. Yeah, 0:09:42.000 --> 0:09:45.960 we um we've been in in the home testing business 0:09:46.280 --> 0:09:51.360 before the pandemic. We actually developed and implemented a program 0:09:51.440 --> 0:09:55.800 called Quest Direct back about three years ago. We're where 0:09:55.840 --> 0:10:00.400 you offer through our direct platform the capability for a 0:10:00.400 --> 0:10:04.240 consumer to buy laboratory testing and some of this could 0:10:04.240 --> 0:10:07.679 be uh, your standard cholesterol tests. We called it a 0:10:07.720 --> 0:10:12.080 LIMPID panel or testing for diabetes that standard test aeroby 0:10:12.120 --> 0:10:15.880 glucose or human globe and able and see and consumers 0:10:15.880 --> 0:10:21.400 can buy this directly online and we will then guide 0:10:21.440 --> 0:10:25.000 them through the process of getting there their blood collected, 0:10:25.120 --> 0:10:27.840 and then we resulted in a smart OPA called my 0:10:28.000 --> 0:10:31.439 Quest and what we found before the pandemic there was 0:10:31.480 --> 0:10:34.920 a market, but during the pandemic the market has actually 0:10:34.960 --> 0:10:38.480 has grown considerably. And that's for the what we call 0:10:38.520 --> 0:10:41.920 our base business testing. But on top of this platform, 0:10:42.240 --> 0:10:44.920 we incorporated what we're doing around covid as well, So 0:10:45.000 --> 0:10:47.360 the ability for people to get a PCR test or 0:10:47.360 --> 0:10:51.160 a strology test is on this direct platform as well. 0:10:51.240 --> 0:10:55.840 And and with COVID, the gold standard is what we 0:10:56.880 --> 0:11:00.240 have been discussing, which is referred to as pc are 0:11:00.640 --> 0:11:04.679 right well, we also are providing antigen testing, which is 0:11:04.760 --> 0:11:08.679 the is the at home capability where you can do 0:11:08.720 --> 0:11:11.520 the specimen collection yourself and you can actually do some 0:11:11.600 --> 0:11:14.600 of the reporting it through some of the applications that 0:11:14.640 --> 0:11:18.160 are provided. And we do believe there is a place 0:11:18.280 --> 0:11:21.520 for those antigen tests in the management of COVID going forward, 0:11:21.520 --> 0:11:25.720 and we pride those to consumers as well as two employers. Hey, Steve, 0:11:25.760 --> 0:11:28.560 We've got to run, but really appreciate checking in with 0:11:28.600 --> 0:11:31.319 you about the new facility and the outlook for your business. 0:11:31.360 --> 0:11:34.520 De Roskowsky, CEO of our Quest Diagnostics, on the phone 0:11:34.520 --> 0:11:37.280 in cy Caucus. You're listening to Bloomberg Business Week Karl 0:11:37.320 --> 0:11:41.240 Master along with Tim Stanivic and Bloomberg Interactive Broker's Studio. Well, 0:11:41.240 --> 0:11:44.760 Stephen Miller, fixture in the Trump administration known for being 0:11:45.200 --> 0:11:49.000 the architect of then President Donald Trump's anti immigration policies, 0:11:49.400 --> 0:11:52.600 is now bringing that crusade to the court. So let's 0:11:52.600 --> 0:11:54.600 get more on what he's doing. It's a story to 0:11:54.600 --> 0:11:56.520 be in the new issue of Bloomberg Business Week out 0:11:56.600 --> 0:11:58.920 later this week, online and on the Bloomberg Let's bring 0:11:58.960 --> 0:12:01.120 in Bloomberg Business wee Get or Chill Weber in our 0:12:01.160 --> 0:12:04.240 Interactive Broker studio along with Eric Larson, who is US 0:12:04.320 --> 0:12:08.000 legal reporter at Bloomberg News. He's on the phone in Brooklyn, 0:12:08.120 --> 0:12:12.240 Stephen Miller. I thought this was really interesting because it's 0:12:12.280 --> 0:12:16.120 sort of like the rights answer for a c l 0:12:16.240 --> 0:12:19.520 U UM. And you know, the central question that I 0:12:19.520 --> 0:12:21.840 wanted to raise with Eric is like, is this for 0:12:21.960 --> 0:12:24.559 real or these are is a legal community looking at 0:12:24.559 --> 0:12:28.680 these cases is something that has you know, real legal 0:12:28.679 --> 0:12:31.200 merit or is this more of a of a way 0:12:31.240 --> 0:12:34.000 of you know, drumming up support for Trump and in 0:12:34.040 --> 0:12:37.920 a in a fundraising sort of sense. Well, to be honest, 0:12:37.960 --> 0:12:39.640 it seems like it could be a little bit of 0:12:39.800 --> 0:12:41.880 boats that. Certainly the views that I got from some 0:12:41.920 --> 0:12:44.480 of the folks that I that I spoke with when 0:12:44.520 --> 0:12:47.400 writing this story. You know, it's a brand new group, 0:12:47.440 --> 0:12:49.800 you know, just started in April and already you know, 0:12:49.840 --> 0:12:52.160 there's these comparisons to the a c l U, which 0:12:52.200 --> 0:12:55.160 has been around, you know forever UM and saying that 0:12:55.200 --> 0:12:57.000 it's this right, the right answer to the A c 0:12:57.200 --> 0:13:00.320 l U. And uh, they do seem to be making 0:13:00.360 --> 0:13:04.000 that that pretty seriously. They you know, like you mentioned, 0:13:04.000 --> 0:13:07.440 they spiled some lawsuits against the Biden administration right off 0:13:07.480 --> 0:13:11.040 the bat um you know, there they have several cases 0:13:11.040 --> 0:13:12.839 pending actually, and they actually got a little bit of 0:13:13.000 --> 0:13:16.960 traction um in a couple of the cases where injunctions 0:13:17.160 --> 0:13:20.640 uh were actually that they had requested were granted. UM. 0:13:20.679 --> 0:13:23.760 And they're finding a lot of Freedom of Information Act requests. 0:13:23.800 --> 0:13:25.600 You can see it all up on their website. You know, 0:13:25.640 --> 0:13:28.720 it's it's pretty NonStop. And of course they're making regular 0:13:29.040 --> 0:13:32.480 television appearances on Fox News and news Max and O 0:13:32.679 --> 0:13:35.640 A N so. UM, they're definitely drumming up a lot 0:13:35.679 --> 0:13:38.360 of supports. Hey, Eric, take a step back and remind 0:13:38.360 --> 0:13:41.120 people who Stephen Miller is. I mean, people who follow 0:13:41.320 --> 0:13:44.520 politics closely remember him, but take us back to what 0:13:44.520 --> 0:13:48.319 he did during the Trump administration, what he was responsible for. Sure. 0:13:48.520 --> 0:13:51.199 So Stephen Miller, he's he's very six years old. And 0:13:51.280 --> 0:13:55.559 during the Trump Trump's term, he was a speech writer, 0:13:55.760 --> 0:13:58.439 he was a senior White House aid and I think 0:13:58.480 --> 0:14:00.360 a lot of people have you know, hadn't heard of 0:14:00.440 --> 0:14:02.640 him before. Um, And all of a sudden he kind 0:14:02.679 --> 0:14:06.640 of had this fairly prominent behind the scenes job. And 0:14:06.720 --> 0:14:09.600 as then President Trump was coming out with some of 0:14:09.600 --> 0:14:14.280 his pretty hardline immigration policies, UM, folks started to backtrack 0:14:14.320 --> 0:14:16.360 and look where these were coming from. And they seem 0:14:16.400 --> 0:14:19.120 to be coming from this guy named Steven miller Um. 0:14:19.240 --> 0:14:22.920 So he sort of had a long history of being uh, 0:14:23.000 --> 0:14:26.480 you know anti immigration, very America First you know, becains 0:14:26.520 --> 0:14:30.000 the name of this organization, America First Legal, and he 0:14:30.120 --> 0:14:33.920 was the architect of, for example, the Muslim band um 0:14:33.960 --> 0:14:36.760 that was so contentious and so devisive during the start 0:14:36.800 --> 0:14:40.160 of Trump's presidency, and also the you know, the child's 0:14:40.280 --> 0:14:43.720 family separation policies and things like that. So his fingerprints 0:14:43.720 --> 0:14:47.320 were on a lot of that. So his efforts is 0:14:47.360 --> 0:14:49.600 it all about you know, taking all of these matters 0:14:49.600 --> 0:14:52.080 to the courts or is this about really keeping Trump 0:14:52.160 --> 0:14:55.840 voters engaged and pumped up? Um? You know again, I 0:14:55.840 --> 0:14:57.880 think I really do think it's it's both. He is 0:14:57.920 --> 0:15:01.240 going to courts. Um. They are all of the people 0:15:01.280 --> 0:15:03.920 involved in this. It's not just you know miller Um 0:15:04.520 --> 0:15:09.400 behind this organization. Um. He's also got you know, Matthew Whittaker, 0:15:09.440 --> 0:15:12.040 who is acting Attorney General under Trump is part of 0:15:12.080 --> 0:15:16.520 this organization as this. Former Trump Chief of Staff Mark Meadows, 0:15:16.560 --> 0:15:19.480 and former Office of Management and Budget director Russ Spots. 0:15:19.520 --> 0:15:21.720 So there's a lot of names behind here. They are 0:15:21.800 --> 0:15:24.400 definitely you know, doing a lot of fundraising, asking for 0:15:24.400 --> 0:15:26.560 a lot of money and using these very divisive issues 0:15:26.600 --> 0:15:29.560 to try to engage Trump voters. But they are also 0:15:29.680 --> 0:15:32.600 going to court and trying to you know, as they 0:15:32.600 --> 0:15:35.480 say it on their website, basically save America from the left. 0:15:36.240 --> 0:15:39.120 And so what kind of cross pollination are we seeing 0:15:39.160 --> 0:15:44.160 between Miller's cases and his cause here in the in 0:15:44.240 --> 0:15:49.440 the Trump fundraising machine. No, I I don't know exactly 0:15:49.640 --> 0:15:53.800 because we don't have any insight into their financials. We 0:15:53.840 --> 0:15:58.640 know that when America First Legal Foundation first you know, launch, 0:15:58.720 --> 0:16:01.480 their first press release was a quote from Trump praising 0:16:01.520 --> 0:16:04.600 Stephen Miller personally and saying, what a great organization this is. 0:16:05.240 --> 0:16:07.440 Uh So, as far as what, you know, how much 0:16:07.440 --> 0:16:09.240 money they've raised, and how it might compare to how 0:16:09.320 --> 0:16:12.280 much money Trump has raised, of course huge amounts of money. Um, 0:16:12.280 --> 0:16:14.400 it's really unclear. I spoke with some people who are 0:16:14.480 --> 0:16:17.040 very critical of American First Legal. Of course there are 0:16:17.040 --> 0:16:20.480 people on on the left who are opposed ideologically, but 0:16:20.520 --> 0:16:23.440 they say that Miller and these other folks are basically 0:16:23.880 --> 0:16:26.400 you know, found that this too, you know, get as 0:16:26.440 --> 0:16:29.440 much money as possible from Trump supporters to sort of 0:16:29.520 --> 0:16:32.120 get a nice paycheck and wait, for the next election 0:16:32.160 --> 0:16:35.280 when Republicans might you know, somehow come back into power. Um. 0:16:35.320 --> 0:16:37.160 So it's very you know, cynical views are out there 0:16:37.200 --> 0:16:39.840 of what of what's going on here. But for as 0:16:39.920 --> 0:16:42.000 much money as they might be raising, like I said, 0:16:42.040 --> 0:16:44.040 they do seem to be doing quite a bit of 0:16:44.080 --> 0:16:47.560 work as well. They've they're not just focused on immigration 0:16:47.640 --> 0:16:51.520 by any stretch. They're going after everything from LGBT rights, 0:16:52.360 --> 0:16:57.360 transgender rights, uh uh, in healthcare and employment, um, trying 0:16:57.360 --> 0:17:02.440 to remove protections there, uh and in filing all of 0:17:02.440 --> 0:17:05.439 these Freedom of Information Act requests, trying to expose what 0:17:05.480 --> 0:17:08.840 they think is wrong doing related to everything from you know, 0:17:08.880 --> 0:17:11.920 the closing down the investigation into the origins of COVID 0:17:12.359 --> 0:17:16.640 to alleged attempts to you know, dismantle ice there all 0:17:16.640 --> 0:17:18.840 over the place. As you right, Eric, the group is 0:17:18.880 --> 0:17:22.280 also challenging pandemic AID that's earmarked for minority owned firms. 0:17:22.320 --> 0:17:24.800 You spoke to a fourth generation black farmer who's the 0:17:24.800 --> 0:17:28.320 founder and president of the National Black Farmers Association, John Boyd. 0:17:28.480 --> 0:17:31.040 Um what is what is the group trying to do 0:17:31.119 --> 0:17:34.440 and what does he say about Stephen Miller and his 0:17:34.480 --> 0:17:37.720 groups attempt to do it well? You know, he was 0:17:37.760 --> 0:17:43.000 really offended. H He his organization intervened in Stephen Miller's 0:17:43.040 --> 0:17:46.000 lawsuit against the Biden administration. Um, you know, in that 0:17:46.119 --> 0:17:51.240 huge pandemic relief bill, there was some large chunks of 0:17:51.240 --> 0:17:55.280 money earmarked for minority owned restaurants and another provision was 0:17:55.359 --> 0:18:00.440 for minority owned farmers and ranchers. And Stephen Miller suit 0:18:00.560 --> 0:18:03.119 saying that no money should be given, they shouldn't be 0:18:03.160 --> 0:18:06.400 given any preference based on race. That that would literally discrimination, 0:18:06.520 --> 0:18:09.840 racial discrimination against white people, is how he described it. 0:18:10.240 --> 0:18:13.200 And John Boyd, who has been part of this organization 0:18:13.240 --> 0:18:15.919 for so long, who founded it, he just said it 0:18:15.960 --> 0:18:17.800 was really offensive and so that there's just been this 0:18:17.960 --> 0:18:21.520 long history of government discrimination at the federal level and 0:18:21.560 --> 0:18:24.320 that the Congress was just trying to do a little 0:18:24.359 --> 0:18:28.000 bit too right that wrong through some equity programs on 0:18:28.119 --> 0:18:30.919 Stephen Miller sees those equity programs as kind of a 0:18:30.920 --> 0:18:35.560 dirty word. And he basically encouraged said Stephen Miller should 0:18:35.600 --> 0:18:37.600 live a day as a black man, he probably wouldn't 0:18:37.880 --> 0:18:41.240 hold these views, is what he said. Uh, it's like 0:18:41.640 --> 0:18:45.440 Miller is like such the perfect boogeyman for for the left, 0:18:45.520 --> 0:18:47.480 you know, and It's like, I also can't imagine like 0:18:47.520 --> 0:18:50.919 a more perfect person to be kind of attempting to 0:18:51.040 --> 0:18:55.080 lead the Trump kind of legal machinations post presidency. It's 0:18:55.119 --> 0:18:57.359 just like everything you know about Trump in the courts 0:18:57.480 --> 0:18:59.679 is just like just you know, muck it up and 0:18:59.720 --> 0:19:03.760 slow it down and make it painful. Um uh, you know, well, 0:19:03.800 --> 0:19:05.400 I guess we'll we'll have to kind of see how 0:19:05.400 --> 0:19:07.879 some of these end up playing out. Where are if 0:19:07.920 --> 0:19:11.080 there's a case to watch that sort of embodies, um, 0:19:11.080 --> 0:19:13.639 what Miller's up to? What what do you think that 0:19:13.640 --> 0:19:16.800 would be? Eric? And Eric really quickly though, Yeah, he 0:19:17.160 --> 0:19:19.879 the Texas Abortion Band case. His group is now involved 0:19:19.880 --> 0:19:23.719 in not representing some opponents to abortion. They're like interveners 0:19:23.760 --> 0:19:25.879 in the case. And he's, uh, I think he's going 0:19:25.920 --> 0:19:27.800 to be definitely trying to make his voice heard in 0:19:27.840 --> 0:19:30.840 that lass. You guys, that progresses. The world just gets 0:19:30.880 --> 0:19:32.880 more and more interesting. Till Webber, thank you so much. 0:19:33.000 --> 0:19:35.679 Editor at Bloomberg business Week. Here in our interactive broker studio, 0:19:35.760 --> 0:19:38.000 Eric Larson check out a story. He's US legal reporter 0:19:38.040 --> 0:19:41.800 at Bloomberg News. On the phone from Brooklyn. You're listening 0:19:41.800 --> 0:19:44.679 to Bloomberg Business Week Carol Masser Tim Stinovic coming up 0:19:44.720 --> 0:19:51.760 one of the most read stories on the Bloomberg. This 0:19:52.160 --> 0:19:55.920 is Bloomberg Business Week with Carol Masser and Bloomberg Quick 0:19:55.960 --> 0:20:00.399 Takes Tim Stinovic on Bloomberg Radio. So this is one 0:20:00.400 --> 0:20:02.520 of our most read stories on the Bloomberg today. It's 0:20:02.560 --> 0:20:05.080 but a little notice change to city groups rewards for 0:20:05.119 --> 0:20:07.480 top execs, and how it is set off. One of 0:20:07.520 --> 0:20:11.320 the bank's most prominent detractors, Jenny Seraine, is joining us. 0:20:11.320 --> 0:20:13.320 She's finance reporter for Bloomberg New She's with us in 0:20:13.359 --> 0:20:17.160 the Bloomberg Interactive Broker studios. So we're in leather, looking 0:20:17.160 --> 0:20:21.200 pretty wild, loving it YouTube you can see the leather jacket. 0:20:21.240 --> 0:20:25.200 I'm loving it. Thank you, You're welcome. Jenny. What is this? 0:20:25.520 --> 0:20:28.240 What was this change in the regulatory filing? And and 0:20:28.400 --> 0:20:32.160 why is Wells Fargo's Mike Mayo drawing attention to it? Yeah, 0:20:32.320 --> 0:20:34.359 it was interesting because it was very little notice. It 0:20:34.440 --> 0:20:38.679 came out on a quiet summer Friday. Um, so that 0:20:38.760 --> 0:20:40.800 was part of his concern, But I think his bigger 0:20:40.840 --> 0:20:43.919 concern was really just you know, they're setting up a 0:20:43.920 --> 0:20:47.240 new bonus program for some of their new CEO Jane 0:20:47.240 --> 0:20:50.840 Fraser's her top deputies, so um popular Bara he's their 0:20:50.840 --> 0:20:53.719 head of Institutional Clients group chief fin inch Officer, Mike Mason, 0:20:54.280 --> 0:20:57.800 the head of Enterprise Ops and Tech, Mike Whittaker. They're 0:20:57.840 --> 0:21:01.240 all eligible for five million dollars apiece over the next 0:21:01.240 --> 0:21:03.720 few years if they can hit some targets around where 0:21:03.760 --> 0:21:05.760 the stock price goes and what city is doing to 0:21:05.800 --> 0:21:08.600 clean up the bank. Um but wells Fargo's a big 0:21:08.640 --> 0:21:10.960 issue with this is just that sad he didn't really 0:21:10.960 --> 0:21:13.439 disclose what those targets were. So there's you know, a 0:21:13.440 --> 0:21:15.560 lot of specificity on the money at State, but not 0:21:15.600 --> 0:21:18.240 a lot of specificity on the targets themselves. And so 0:21:18.560 --> 0:21:20.640 he's just calling fresh attention to this, saying they need 0:21:20.680 --> 0:21:23.280 to do better. I got to read the quote that's like, please, 0:21:23.560 --> 0:21:25.560 you guys all know what I'm gonna read. He Mike 0:21:25.600 --> 0:21:27.719 Mayo said in an other client's quote, that's like charging 0:21:27.760 --> 0:21:30.160 us for dinner before we know if we're getting hot 0:21:30.160 --> 0:21:33.800 dogs or caviare Well, this is someone who's been a 0:21:33.800 --> 0:21:36.159 critic our city. Correct. Yes, we'll know Mike Mayo. The 0:21:36.160 --> 0:21:38.080 Bloomberg audience knows who he is. He was just on 0:21:38.119 --> 0:21:40.880 TV passing around popcorn. We'll talk about that later. Yes, 0:21:40.920 --> 0:21:43.959 So he's very known for his very fiery exchanges with 0:21:44.040 --> 0:21:47.040 City Group executives for a long long time. Now, UM 0:21:47.040 --> 0:21:48.639 has been covering this stock for a while, you know, 0:21:48.720 --> 0:21:51.920 interestingly he has um he's actually overweight on the stock. 0:21:51.960 --> 0:21:54.800 He's recommending that this is a bye. So you know, 0:21:55.640 --> 0:21:57.480 there's I think a little bit of good and a 0:21:57.520 --> 0:21:59.000 little bit of bad here. He thinks there's a long 0:21:59.040 --> 0:22:01.080 way for this this company to go, and he seems 0:22:01.080 --> 0:22:03.199 to believe that their new CEO, Jane Fraser, is a 0:22:03.280 --> 0:22:06.000 change agent that can accomplish that. But Um, you know, 0:22:06.040 --> 0:22:07.879 still holding their their feet to the fire on this. 0:22:08.119 --> 0:22:10.199 So help me out. I mean, this happens, right, I 0:22:10.240 --> 0:22:12.720 mean a lot of firms, a lot of companies in general, 0:22:12.840 --> 0:22:16.960 publicly held companies, pick your industry. There are centives that 0:22:17.000 --> 0:22:19.919 are giving to senior execs to bring about X y 0:22:20.000 --> 0:22:22.480 Z at a company. Is it just that it came 0:22:22.480 --> 0:22:25.560 out late on a summer Friday. What is it that's 0:22:25.640 --> 0:22:28.879