WEBVTT - Bloomberg Businessweek Weekend - June 24th, 2022 0:00:01.040 --> 0:00:05.400 This is Bloomberg Business Week Inside from the reporters and 0:00:05.600 --> 0:00:09.200 editors who bring you America's most trusted business magazine, plus 0:00:09.240 --> 0:00:13.200 global business finance and tech news as it happened. Bloomberg 0:00:13.240 --> 0:00:16.759 Business Week with Carol Messer and Bloomberg Quick Takes Tim 0:00:16.800 --> 0:00:21.320 Stinovic on Bloomberg Radio. Hi, everyone, Welcome to the weekend 0:00:21.400 --> 0:00:24.400 edition of Bloomberg Business Week. Carol Masser is off this 0:00:24.480 --> 0:00:27.360 holiday short and trading week, during which we heard President 0:00:27.440 --> 0:00:30.880 Joe Biden call on Congress to cut taxes on gasoline. 0:00:31.240 --> 0:00:34.239 This with the busy summer travel season already upon us 0:00:34.760 --> 0:00:37.360 and speaking of driving ahead, on this broadcast, we'll hear 0:00:37.360 --> 0:00:39.840 from the global vice president of Cadillac on the brands 0:00:39.880 --> 0:00:42.960 move away from gas powered vehicles, and the CEO of 0:00:43.000 --> 0:00:46.559 Contour Brands tells us how his company has largely skirted 0:00:46.560 --> 0:00:51.400 the supply chain troubles touching nearly every sector. Plus twenty 0:00:51.400 --> 0:00:54.840 three and me CEO and Wajitski stops by to discuss 0:00:54.840 --> 0:00:57.319 her company's key research on long COVID and a rough 0:00:57.360 --> 0:01:00.000 stretch for its share price. All of that to come, 0:01:00.080 --> 0:01:03.440 We begin with this week's cover story and another struggling 0:01:03.440 --> 0:01:08.800 area of the market. Cryptocurrency, specifically the regulatory crackdown facing 0:01:08.800 --> 0:01:12.360 the industry's richest man, Cheng Peng Zhoo business we call 0:01:12.440 --> 0:01:15.240 him this. Max Chaffkin and Bloomberg News markets reporter Justina 0:01:15.280 --> 0:01:17.959 Lee co wrote the piece. They joined me in Bloomberg 0:01:18.000 --> 0:01:21.720 News senior markets reporter Katie Greifeld with more. Cz is 0:01:21.720 --> 0:01:26.280 the billionaire co founder of the world's biggest crypto exchange. 0:01:26.520 --> 0:01:28.880 I think for a lot of people who haven't been 0:01:28.920 --> 0:01:32.959 paying attention to crypto might not really understand exactly how 0:01:33.000 --> 0:01:36.319 big finances. But you know, in twenty four hours, I 0:01:36.319 --> 0:01:40.640 think they usually say they processed sempty six billion dollars 0:01:40.640 --> 0:01:43.880 of transactions. And if you think about coin base as 0:01:43.920 --> 0:01:47.160 the exchange the most Americans are most familiar with, I mean, 0:01:47.319 --> 0:01:50.080 finance is like I think the last time I looked 0:01:50.120 --> 0:01:53.320 about forty times bigger than that. And that's because they 0:01:53.360 --> 0:01:57.240 have a lot of volumes in crypto derivatives. And that's 0:01:57.240 --> 0:02:01.040 because you know, they're everywhere, and they're really the retail 0:02:01.120 --> 0:02:05.920 trader's favorite crypto exchange. And Max, you wanted to buy 0:02:06.120 --> 0:02:08.480 you met the man? What was he like in person? 0:02:08.560 --> 0:02:12.799 Because he is sort of this mysterious but very prolific figure. Well, yeah, 0:02:13.200 --> 0:02:16.120 as Justina is saying, I mean it Binance itself is 0:02:16.160 --> 0:02:20.079 popular and cz has this kind of like cult following. 0:02:20.160 --> 0:02:23.440 The crypto heads really like the company, They really like him. 0:02:23.480 --> 0:02:25.960 I mean in person, he's very unassuming, right, He doesn't 0:02:26.000 --> 0:02:28.239 come off as a h kind of what you would 0:02:28.240 --> 0:02:30.760 think of as a normal crypto billionaire. He drives a normal, 0:02:31.080 --> 0:02:33.520 uh seaming car or is driven I probably should say 0:02:33.600 --> 0:02:36.120 h in a normal seeming car, and uh, you know 0:02:36.160 --> 0:02:39.560 he's a slender, soft spoken and so on. But of 0:02:39.600 --> 0:02:41.480 course you know that this is all part of a 0:02:41.560 --> 0:02:44.240 pitch and what Justustina and I wrote about in the 0:02:44.320 --> 0:02:49.240 stories that Finance basically after years of really kind of behaving, 0:02:49.520 --> 0:02:52.280 you know, very aggressively in terms of regulation, in terms 0:02:52.280 --> 0:02:54.800 of its approach to the law, is very much trying 0:02:54.840 --> 0:02:57.519 to strike a new note, which is a note of 0:02:57.880 --> 0:03:00.600 we are as CZI told me in new By, where 0:03:00.600 --> 0:03:03.480 the stable guys, where where the adults in the room 0:03:03.639 --> 0:03:05.720 and two people who follow this industry. I mean that 0:03:05.880 --> 0:03:08.639 is a bold claim to say the lead staple is 0:03:08.680 --> 0:03:11.360 a bit of a dirty word in crypto right now. Yeah, 0:03:11.440 --> 0:03:13.720 and as Justina could speak to, I mean this this 0:03:13.800 --> 0:03:17.880 is not a company known for a lot of stability. Okay, Justina, 0:03:18.080 --> 0:03:20.080 come on back in here. I'm not going to say 0:03:20.080 --> 0:03:22.600 the word because it's not allowed on radio, but I'll 0:03:22.639 --> 0:03:26.480 just say S coins. Okay, S coins. People who know 0:03:26.560 --> 0:03:29.800 crypto know what I'm talking about here. What is finances 0:03:29.840 --> 0:03:32.240 relationship with these so called S coins and explain what 0:03:32.280 --> 0:03:35.480 they are? Yeah, I mean these S coins where we 0:03:35.520 --> 0:03:38.520 can call them all the coins are basically these smaller 0:03:38.600 --> 0:03:42.200 cryptocurrencies that got really big in the I O boom 0:03:42.240 --> 0:03:46.120 up two thousands seventeen. And the relationship with finances that 0:03:46.280 --> 0:03:49.160 one thing they realized in two thousand seventeen was that 0:03:49.200 --> 0:03:52.520 people didn't just want to trade the coin at a ethereum. 0:03:52.560 --> 0:03:55.680 They wanted to trade you know, like hundreds of token 0:03:56.000 --> 0:03:58.400 you know that different people are pumping on the internet. 0:03:58.440 --> 0:04:01.200 And that's really how they were god baked back then. 0:04:02.200 --> 0:04:06.880 And so finance is interesting because it's kind of jurisdiction free. 0:04:07.280 --> 0:04:11.960 Max cz is kind of jurisdiction free as well. How 0:04:12.120 --> 0:04:15.080 is that? So? How is he able to do that? Well? Yeah, 0:04:15.360 --> 0:04:18.719 so the company was founded in China, but but pretty 0:04:18.800 --> 0:04:22.080 quickly after they're founded, they basically went on the move. 0:04:22.560 --> 0:04:26.039 And what you have is this website finance dot com 0:04:26.320 --> 0:04:29.120 where most of the trading volume is that doesn't really 0:04:29.120 --> 0:04:32.040 have a home, and there isn't a clear country, there 0:04:32.080 --> 0:04:36.240 isn't a clear jurisdiction. And that is basically both a 0:04:36.240 --> 0:04:38.520 feature and a bug. It's a bug because it's it's 0:04:38.520 --> 0:04:41.360 a regulatory vulnerability. You now have um, you know, sort 0:04:41.360 --> 0:04:43.400 of regulators all over the world and especially in the 0:04:43.440 --> 0:04:46.680 United States scrutinizing this company very closely. But it's a 0:04:46.720 --> 0:04:50.120 feature in that it basically allowed them to offer all 0:04:50.160 --> 0:04:54.599 of these unlicensed financial products in enormous volumes, you know, 0:04:54.680 --> 0:04:58.520 with very few repercussions. And so you know, and and that, 0:04:58.720 --> 0:05:00.680 and that's why this company and all lot of ways 0:05:00.839 --> 0:05:03.640 embodies the crypto industry itself, because of course crypto is 0:05:03.680 --> 0:05:08.240 this you know, borderless uh you know, nationless idea, right, 0:05:08.240 --> 0:05:11.320 and then we have this borderless nationalist company. And what 0:05:11.440 --> 0:05:14.200 we're seeing now is is the potential for those ideas 0:05:14.279 --> 0:05:17.000 to maybe run into, you know, some of those old 0:05:17.040 --> 0:05:20.160 institutions that they were trying to displace. Justin as I mentioned, 0:05:20.520 --> 0:05:23.480 a lot of stuff you and Max uncovered new in 0:05:23.560 --> 0:05:25.960 this and and one part of that that I want 0:05:25.960 --> 0:05:28.719 to get to is the ownership structure of different finance 0:05:28.880 --> 0:05:31.880 arms throughout the world. What is finance US, How is 0:05:31.880 --> 0:05:33.840 it related to finance? And what did you learn about 0:05:33.880 --> 0:05:38.560 this intricate web of different firms throughout the world? Right, So, 0:05:38.760 --> 0:05:43.240 binance US started in two thousand nineteen because US regulators 0:05:43.320 --> 0:05:47.039 wouldn't really have finance in the country, and so finance 0:05:47.120 --> 0:05:49.839 was light. You know, we'll start this brand new entity 0:05:50.040 --> 0:05:52.320 that's going to be independent and it's going to be 0:05:52.480 --> 0:05:56.200 more compliant. And that's sort of the way they've been operating, 0:05:56.320 --> 0:06:00.240 which is that they have this ambiguous entity Finance Stock Call. 0:06:00.760 --> 0:06:04.240 But you know, in some local jurisdiction they might open 0:06:04.520 --> 0:06:08.800 a local company that might engage with regulators. And the 0:06:08.920 --> 0:06:11.040 question kind of behind all this is, you know, like 0:06:11.160 --> 0:06:14.880 who actually owns this cash cow. We don't know the 0:06:15.000 --> 0:06:18.200 parent company behind finance dot Com, but if you look 0:06:18.240 --> 0:06:21.840 at the local entities and a very important company called 0:06:22.240 --> 0:06:25.760 Finance Capital Management in British Virgin Islands, I think they're 0:06:25.760 --> 0:06:29.920 basically entirely owned by CZ which kind of suggests that 0:06:30.080 --> 0:06:34.360 the company doesn't have any external shareholders. And it's quite 0:06:34.440 --> 0:06:37.920 interesting given that crypto has always been about the centralization, 0:06:38.120 --> 0:06:41.200 because at least in the financial sense finances, not the 0:06:41.320 --> 0:06:45.080 centralize at all. That was Bloomberg News Markets reporter Justina 0:06:45.200 --> 0:06:47.360 Lee and Business Week call him this Max Chafkin on 0:06:47.440 --> 0:06:50.440 this week's cover story, Bloomberg's Katie Greifeld with us there 0:06:50.560 --> 0:06:54.480 as well, coming up. Demand for Cadillac's new electric suv 0:06:54.800 --> 0:06:58.040 is through the roof. So what's the problem, the GM 0:06:58.080 --> 0:07:01.680 brand's global vice president explains. Next, you're listening to Bloomberg 0:07:01.720 --> 0:07:14.400 Business Week. This is Bloomberg. This is Bloomberg Business Week 0:07:14.560 --> 0:07:18.320 with Carol Messer and Bloomberg Quick takes Tim Stenovan from 0:07:18.440 --> 0:07:23.080 Bloomberg Radio. Earlier this year, Cadillac announced it would have 0:07:23.120 --> 0:07:27.280 an all electric portfolio by that starts with Lyric. It's 0:07:27.320 --> 0:07:31.240 the brand's first all electric vehicle. Orders for the model 0:07:31.280 --> 0:07:34.520 opened up last month and quickly sold out. This past week, 0:07:34.560 --> 0:07:37.680 Bloomberg New Senior Markets reporter Katie Greifeld and I spoke 0:07:37.720 --> 0:07:41.360 with Cadillac's global vice president Rory Harvey about why some 0:07:41.600 --> 0:07:44.120 customers will have to wait an extra year for their 0:07:44.160 --> 0:07:47.000 new rides. I guess at the moment, there's just significant 0:07:47.040 --> 0:07:49.000 demand for the product. If you look at it, you know, 0:07:49.120 --> 0:07:51.440 we had the expectations that we set. We pulled the 0:07:51.520 --> 0:07:53.560 vehicle forward nine months, and you know, at the moment, 0:07:53.640 --> 0:07:56.640 demand is exceeding our expectations. So we're looking at expanding 0:07:56.680 --> 0:08:00.600 our capacity. We're looking at gaining incremental manufacturing capacity, we're 0:08:00.600 --> 0:08:04.160 looking at gaining incremental components, and we've actually expanded our 0:08:04.200 --> 0:08:06.680 production through till the end of February significantly over the 0:08:06.760 --> 0:08:09.360 original plans. So at the moment, it's more a case 0:08:09.400 --> 0:08:11.080 of being able to keep up with the demand. There's 0:08:11.120 --> 0:08:15.320 not specific challenges necessarily reated to SEVI conductors, etcetera. It's 0:08:15.560 --> 0:08:18.520 it's just a significant demand. Give us some numbers here 0:08:18.560 --> 0:08:21.560 about demand, yea, So we had about two hundred and 0:08:21.600 --> 0:08:24.360 fifty thou hand raisers. We've not disclosed our production numbers 0:08:24.400 --> 0:08:27.280 for model year twenty three, but suffice to say that 0:08:27.480 --> 0:08:30.000 it's sold out within four hours. The limited edition, the 0:08:30.080 --> 0:08:33.200 debut edition that we put on sale initially again sold 0:08:33.240 --> 0:08:35.200 out in just over ten minutes. So you know, there's 0:08:35.200 --> 0:08:37.640 just so many people that are excited about Cadillac coming 0:08:37.679 --> 0:08:40.920 forward in terms of the all electric lyric. It's fantastic. 0:08:41.160 --> 0:08:43.200 It puts a smile on our face. You were talking 0:08:43.280 --> 0:08:46.400 about the demand. You saw two fifty hand raisers. Does 0:08:46.440 --> 0:08:48.720 that mean that doesn't mean deposits, right, that means expressions 0:08:48.720 --> 0:08:51.839 of interest. Yeah, exactly. So these are people that have said, 0:08:51.880 --> 0:08:53.920 you know, as details become more available, we'd like to 0:08:53.960 --> 0:08:55.760 be kept in contact with you, we'd like to get 0:08:55.800 --> 0:08:58.480 the extra details, etcetera. And then we open the order 0:08:58.480 --> 0:09:00.600 bank up on made the nineteenth and that was when 0:09:00.679 --> 0:09:02.520 we sold out the first model. Yeah, okay, I don't 0:09:02.559 --> 0:09:05.199 work for a global car manufacturer. I don't work for 0:09:05.240 --> 0:09:07.320 a global car brand, so I could be wrong here, 0:09:07.360 --> 0:09:10.000 but it does seem like you guys are leaving money 0:09:10.040 --> 0:09:12.959 on the table here with this type of interest that 0:09:13.040 --> 0:09:15.480 it's sold out within four hours, one version selling out 0:09:15.520 --> 0:09:19.080 within ten minutes. You can't get it until I mean, 0:09:19.440 --> 0:09:21.880 what went wrong in the planning of of figuring out 0:09:21.920 --> 0:09:24.520 how much people would want this thing? So a couple 0:09:24.559 --> 0:09:27.280 of comments really. Firstly, just it'll be twenty three model 0:09:27.360 --> 0:09:29.120 year that is sold out at the moment, so the 0:09:29.480 --> 0:09:32.080 twenty four model year will actually start during quarter one 0:09:32.120 --> 0:09:36.080 of next year. That's a great that's a great clarification, 0:09:36.200 --> 0:09:38.240 thank you. So you will be able to get a 0:09:38.320 --> 0:09:40.520 vehicle probably sometime in quarter two of next year. So 0:09:40.800 --> 0:09:43.199 it's about a year, you know, yeah, exactly, So you 0:09:43.280 --> 0:09:44.880 know that sort of puts in balance a little bit 0:09:44.920 --> 0:09:47.280 in terms of the pricing. Obviously, we do look at 0:09:47.320 --> 0:09:49.640 price in good terms of the debut edition, we wanted 0:09:49.679 --> 0:09:51.040 to go out there with our best foot forward. We 0:09:51.080 --> 0:09:53.360 put a very attractive special price out there, just under 0:09:53.400 --> 0:09:55.960 sixty thou and in terms of the vehicles that are 0:09:56.040 --> 0:09:58.319 on sale now, it's just under sixty three thousand for 0:09:58.360 --> 0:10:00.880 the real world drive and sixty for the Oil Drive. 0:10:01.000 --> 0:10:03.160 So as always we will look at the competitive set 0:10:03.200 --> 0:10:05.600 that we wanted to really get a grip in the market. 0:10:05.679 --> 0:10:07.400 We think that we've got a superb product and we 0:10:07.480 --> 0:10:10.280 want to get as many customers enjoying that products as possible. 0:10:10.800 --> 0:10:15.280 Do you anticipate having to delay that delivery target at 0:10:15.320 --> 0:10:18.360 this point? Not really. Um, you know, it's one of 0:10:18.400 --> 0:10:20.679 those ones. I hesitate a little bit because there is 0:10:20.679 --> 0:10:23.280 still uncertainty out there in terms of supply chain. I think, 0:10:23.360 --> 0:10:25.360 you know, I just heard some of the show talking 0:10:25.400 --> 0:10:27.719 about COVID. You know, there are still challenges in terms 0:10:27.760 --> 0:10:29.880 of semi conductors. I would say that the industry is 0:10:29.920 --> 0:10:32.520 stabilizing overall from some of the speed bumps that have 0:10:32.640 --> 0:10:34.679 come up in the last couple of years. But at 0:10:34.679 --> 0:10:36.640 the moment, we've got a high degree of confidence. The 0:10:36.679 --> 0:10:38.720 next big test for us is August, where we really 0:10:38.840 --> 0:10:41.000 ramp up the production capacity of the lyric. But at 0:10:41.040 --> 0:10:43.360 the moment, I would say that we're confident in our 0:10:43.400 --> 0:10:45.640 ability to be able to deliver in line with the 0:10:46.000 --> 0:10:48.079 estimates that we've given to customers. How do you ramp 0:10:48.200 --> 0:10:50.960 up production when supply chains are just snarled around the world. 0:10:51.000 --> 0:10:53.600 It's not just components that are going into these things, 0:10:53.679 --> 0:10:56.000 it's the raw materials that are going into batteries. Give 0:10:56.040 --> 0:10:58.079 me an idea rory our GM is handling that, and 0:10:58.240 --> 0:11:01.000 how Cadillac is handling that. Yes, so you know, we 0:11:01.080 --> 0:11:03.559 have a task force that's in place that meets multiple 0:11:03.600 --> 0:11:06.000 times and not just every week, but every day. You know, 0:11:06.120 --> 0:11:09.040 we go to different suppliers, We look at second tier suppliers, 0:11:09.120 --> 0:11:11.080 we go direct to some of the second tier suppliers. 0:11:11.160 --> 0:11:15.200 We look at securing materials, securing components on a long 0:11:15.320 --> 0:11:18.280 term basis. You know, there's a whole stream of work 0:11:18.360 --> 0:11:20.000 that goes on in terms of doing that, And at 0:11:20.040 --> 0:11:21.640 the moment, I would say that we're in a much 0:11:21.720 --> 0:11:24.160 better position as a company that we were during the 0:11:24.200 --> 0:11:26.200 course of last year. Indeed, as most o EM's were 0:11:26.320 --> 0:11:27.839 during the course of last year. And I would say 0:11:28.080 --> 0:11:30.040 the first couple of months of this year have really 0:11:30.080 --> 0:11:32.760 started to stabilize. But there is still pent up demand 0:11:32.840 --> 0:11:35.360 from COVID, from semi conductors, et cetera. So at the moment, 0:11:35.480 --> 0:11:38.080 there's still more demand that there is supplier product, which 0:11:38.120 --> 0:11:40.920 means that there's strong prices in the marketplace and relatively 0:11:40.960 --> 0:11:45.680 low incentives from manufacturers. What rory is the biggest bottleneck here? 0:11:46.800 --> 0:11:49.240 If you were to say there's there's one component or 0:11:49.320 --> 0:11:51.800 one raw material that's just giving you the most trouble, 0:11:51.920 --> 0:11:54.240 what is it? Yeah, I'm not sure that there is. 0:11:54.360 --> 0:11:56.320 I think you know. The thing that that we've got 0:11:56.440 --> 0:11:59.240 is we've got your demand that is just absolutely massive, 0:11:59.400 --> 0:12:01.559 and you know, we're really positive and really pleased in 0:12:01.640 --> 0:12:04.199 terms of that. So you know, we're just looking now 0:12:04.320 --> 0:12:06.920 continuously as to how we can pull the leavers to 0:12:06.960 --> 0:12:10.440 be able to execute increased manufacturing capabilities and supply chain 0:12:10.520 --> 0:12:12.520 capabilities to be able to meet that demork. Well, let 0:12:12.520 --> 0:12:13.960 me let me ask the question a different way. If 0:12:14.000 --> 0:12:17.240 there's one lever you could magically with a magic wand 0:12:17.280 --> 0:12:20.959 to Paul right now, which one would it be? It 0:12:21.000 --> 0:12:23.880 would probably be supply chain in terms of it. But 0:12:24.000 --> 0:12:25.800 it's a difficult one to say because you know, we've 0:12:25.880 --> 0:12:28.160 certainly got the ability to be able to deliver versus 0:12:28.200 --> 0:12:31.160 our business plan, and indeed we're increasing our supply over 0:12:31.160 --> 0:12:33.040 and above our business plans. So from that point of view, 0:12:33.280 --> 0:12:35.520 I would say it's still positive. But you know, there 0:12:35.520 --> 0:12:37.520 are there are you know, we could always build more 0:12:37.559 --> 0:12:40.480 and we could always sell more. Rory, I would love 0:12:40.520 --> 0:12:42.800 to hear your thoughts on the competition because when you 0:12:42.960 --> 0:12:46.280 think ev most people in the US would think Tesla, 0:12:46.360 --> 0:12:48.280 And if you think about the target there, how do 0:12:48.360 --> 0:12:51.720 you surpass Tesla? Yeah, it's a it's a great question, 0:12:51.920 --> 0:12:53.800 you know, and lots of people ask the question in 0:12:53.920 --> 0:12:55.760 terms of Tesla. I guess from my perspective, you know, 0:12:55.800 --> 0:12:57.560 I'm just really focused in terms of what we can 0:12:57.600 --> 0:12:59.960 do as Cadillac. You know, we've got some distinct advice 0:13:00.000 --> 0:13:02.160 intages I believe. You know, we've got a dealer network 0:13:02.200 --> 0:13:04.760 out there that can provide after sales coverage, that can 0:13:04.800 --> 0:13:07.880 provide support in the aftermarket. We've got a great coverage 0:13:07.920 --> 0:13:10.240 of dealers. Indeed, if you look at GM overall, I 0:13:10.320 --> 0:13:13.920 think that customers can get to a dealer within ten minutes. 0:13:13.960 --> 0:13:16.600 So we think that with our product knowledge, with our history, 0:13:16.679 --> 0:13:19.679 with our pedigree, with our customer care ethos, with our 0:13:19.840 --> 0:13:23.920 footprint of distribution, that we can have a competitive advantage there. Rory, 0:13:24.000 --> 0:13:26.079 does it concern you at all if a customers on 0:13:26.200 --> 0:13:29.240 a waiting list for any v that they're going to say, 0:13:29.280 --> 0:13:30.760 you know, I'm not I'm not willing to wait a 0:13:30.840 --> 0:13:34.240 year for this. I want something sooner. I need something sooner, 0:13:34.720 --> 0:13:37.480 and they go to a competitor. Yeah, I mean it's 0:13:37.480 --> 0:13:39.360 a good question. You know, we haven't seen that in 0:13:39.520 --> 0:13:41.920 terms of the debut edition as an example, in terms 0:13:41.960 --> 0:13:44.240 of people saying that you know that the time is 0:13:44.559 --> 0:13:46.800 too long to wait. Indeed, if you looked at many 0:13:47.040 --> 0:13:48.720 O E ms at the moment as an example, if 0:13:48.760 --> 0:13:51.360 a customer orders a high demand vehicle, there's going to 0:13:51.400 --> 0:13:53.520 be an extended lead time for customers to be able 0:13:53.559 --> 0:13:55.599 to get that vehicle. So, yes, it does concern me, 0:13:56.040 --> 0:13:57.960 but at the moment, I don't see it fundamentally as 0:13:57.960 --> 0:14:00.240 a big issue. Rory, give us an idea of what 0:14:00.400 --> 0:14:02.760 you're doing, what Cadillac is doing, what GM is doing 0:14:02.880 --> 0:14:05.880 behind the scenes right now in order to have that 0:14:06.040 --> 0:14:11.280 portfolio of Cadillac vehicles be all electric by yeah, So 0:14:11.600 --> 0:14:13.200 you know, if you looked at it, we've now launched 0:14:13.240 --> 0:14:16.040 our last ice vehicle. Literally, if you go back a 0:14:16.120 --> 0:14:19.520 few weeks now, we announced the Cadillac Escalade V. I 0:14:19.600 --> 0:14:22.600 guess it was a derivative within the Escalade family. But 0:14:22.720 --> 0:14:25.200 from this point forward, every vehicle that we will launch 0:14:25.280 --> 0:14:28.800 will be an ev We literally teased Celestic, which will 0:14:28.800 --> 0:14:30.840 be an ultra luxury vehicle as an example. So we 0:14:30.920 --> 0:14:34.120 put a few schematics of that vehicle out there in 0:14:34.120 --> 0:14:36.720 the marketplace that we're looking forward to break in some 0:14:36.880 --> 0:14:39.800 news on that in the sort of July September time scale. 0:14:40.080 --> 0:14:42.800 So everything really is focused on EVS from a Cadillac 0:14:42.880 --> 0:14:46.360 perspective now and into the future. Our thanks to Rory Harvey, 0:14:46.440 --> 0:14:49.960 he's global vice president of Cadillac. Bloomberg Skinny Gradveld once 0:14:50.000 --> 0:14:53.000 again taking part in that interview. Still ahead on Bloomberg 0:14:53.040 --> 0:14:55.760 Business Week, Why Genetics Company twenty three and me looked 0:14:55.800 --> 0:14:58.640 into long COVID and what women in particular need to 0:14:58.720 --> 0:15:02.400 know about its effect. CEO and Wijetski is up next. 0:15:02.760 --> 0:15:11.600 This is Bloomberg broadcasting from the financial capital of the world, 0:15:11.760 --> 0:15:15.240 Bloomberg Eleve in Frio in New York to Washington, d C. 0:15:15.400 --> 0:15:20.080 Bloomberg to Boston, Bloomberg one O six one to San Francisco, 0:15:20.200 --> 0:15:23.880 Bloomberg nine to the country, Sirius XM Chamber one nine 0:15:24.240 --> 0:15:27.760 and around the globe the Bloomberg Business and Bloomberg Radio 0:15:27.920 --> 0:15:32.000 dot Com. This is Bloomberg Business Week with Carol Messer 0:15:32.240 --> 0:15:38.080 and Bloomberg Quick Takes Tim Stinnovan on Bloomberg Radio, our 0:15:38.200 --> 0:15:40.400 next guest in her company were featured in a Business 0:15:40.440 --> 0:15:43.200 Week cover story back in November. It was all about 0:15:43.240 --> 0:15:45.880 how twenty three and Me wants to use customers genetic 0:15:46.000 --> 0:15:48.720 data to help fight cancer. Now, the firm best known 0:15:48.800 --> 0:15:51.240 for at home DNA test is taking on long COVID 0:15:51.280 --> 0:15:53.600 as well. Carol and I caught up with co founder 0:15:53.640 --> 0:15:56.520 and CEO and Wajitski, and we began by asking the 0:15:56.720 --> 0:15:59.280 one time hedge fund analyst about the company's share price 0:16:00.160 --> 0:16:03.720 down roughly year to date. Coming from the Wall Street 0:16:03.760 --> 0:16:05.520 world and now being the CEO of a public re 0:16:05.680 --> 0:16:09.600 traded company, it is, you know, it's it's interesting that 0:16:09.760 --> 0:16:12.760 you know twenty three continues to execute um I'm incredibly 0:16:12.800 --> 0:16:15.720 proud of the team. We continue to move programs through 0:16:15.760 --> 0:16:19.680 the pipeline UM, you know, make drug discovery, UM, continue 0:16:19.760 --> 0:16:23.520 to engage our customers on you know, genomic medicine and 0:16:23.840 --> 0:16:25.960 where we can go with that. We recently acquired a 0:16:26.000 --> 0:16:28.440 company called Lemonade, so it gives us the ability to 0:16:28.560 --> 0:16:32.240 offer care to our customers both through pharmacy as well 0:16:32.280 --> 0:16:35.680 as to access to care providers. So the company has 0:16:35.720 --> 0:16:39.760 just continued to execute. But obviously market conditions are are challenging. 0:16:39.920 --> 0:16:42.440 So we're very mindful of the fact that market conditions 0:16:42.520 --> 0:16:45.760 have changed and the future is more uncertain. So we 0:16:45.880 --> 0:16:47.960 take all that into consideration now and we want to 0:16:48.000 --> 0:16:49.600 talk too more about what you're doing because I feel 0:16:49.600 --> 0:16:51.040 like we just came back from a conference. It was 0:16:51.080 --> 0:16:53.560 all about the financial world. I was involved in a 0:16:53.640 --> 0:16:56.680 panel that specifically about what the future of money is, 0:16:56.720 --> 0:16:58.920 reimagining it, and I think when it comes to things 0:16:58.960 --> 0:17:02.360 like financial services and certainly health care, it does feel 0:17:02.360 --> 0:17:04.399 like we're on the cusp of doing things so different, 0:17:04.480 --> 0:17:07.159 especially when it comes to treatment modalities. Having said that, 0:17:07.200 --> 0:17:09.360 I just want to go back to the market environment 0:17:09.400 --> 0:17:11.359 because we're asking all of our leaders this. I mean, 0:17:11.440 --> 0:17:13.439 when you do have a stock that is down more 0:17:13.520 --> 0:17:16.320 than six I mean, what kind of pressure does that 0:17:16.440 --> 0:17:18.639 put on you and your team who are working on 0:17:18.760 --> 0:17:22.280 things that are going to take some time. Yeah, you know, 0:17:22.359 --> 0:17:24.320 I was investing back in sort of when the market 0:17:24.359 --> 0:17:26.920 crash back in two thousand um, you know, two thousand 0:17:27.000 --> 0:17:29.040 one UM, and it took a long time to recover. 0:17:29.200 --> 0:17:31.720 And I think that there's the way we approach this 0:17:31.960 --> 0:17:34.080 is really about making sure that we're doing things that 0:17:34.200 --> 0:17:37.480 are going to you know, see value within near term 0:17:38.080 --> 0:17:41.200 and probably have to you know, minimize some of the 0:17:41.240 --> 0:17:43.200 projects that are going to focus on some of the 0:17:43.280 --> 0:17:46.920 longer term initiatives, but really focus on priorities, and you know, 0:17:47.000 --> 0:17:50.400 also making sure that you're using cash and the wisest way, 0:17:50.600 --> 0:17:54.600 so all kinds of things that we start to you know, reevaluate. 0:17:54.800 --> 0:17:57.800 But it's really about making sure that you we you know, 0:17:57.880 --> 0:18:00.159 we have a very strong cash balancie right now and 0:18:00.280 --> 0:18:02.639 making sure that we you know, extend that runway as 0:18:02.680 --> 0:18:05.480 long as possible, and making sure that all the programs 0:18:05.520 --> 0:18:08.600 that we're focused on are really essential. And I want 0:18:08.600 --> 0:18:11.280 to get to the research that you've recently found it 0:18:11.359 --> 0:18:13.240 twenty three and me some really interesting stuff when it 0:18:13.280 --> 0:18:15.600 comes to long COVID, and I think, you know, we're 0:18:15.600 --> 0:18:18.119 at the point in their pandemic where Caroline I travel 0:18:18.160 --> 0:18:19.480 At some points, I felt like I was the only 0:18:19.560 --> 0:18:21.960 one wearing a mask on some of those flights in 0:18:22.200 --> 0:18:24.239 the airport and even at this conference that we were at. 0:18:24.600 --> 0:18:26.760 But long COVID did have my mask gone back, you did, 0:18:27.280 --> 0:18:29.720 Carol did too, Yeah, but but but we were it 0:18:29.840 --> 0:18:32.480 was like, yeah, that was it. But I do want 0:18:32.520 --> 0:18:34.720 to know and what you found when it comes to 0:18:34.800 --> 0:18:36.680 long COVID, because that's something that I think about a 0:18:36.720 --> 0:18:38.440 lot and one of the reasons why I don't want 0:18:38.440 --> 0:18:42.200 to get COVID. Yeah. So there's a couple of things 0:18:42.240 --> 0:18:44.359 that are really interesting thing for me about this. So 0:18:44.480 --> 0:18:46.800 first and foremost, you know, the way part of what 0:18:46.920 --> 0:18:49.200 we conceptualized when we started twenty three and me, and 0:18:49.240 --> 0:18:51.000 it goes back to some of your earlier questions, was 0:18:51.400 --> 0:18:53.719 really a whole new way of doing research, Like how 0:18:53.840 --> 0:18:55.399 is it that you can have millions and millions of 0:18:55.440 --> 0:18:59.280 people engaged on a single platform with phenotypic data, with 0:18:59.359 --> 0:19:01.200 the genetic and formation and be able to go back 0:19:01.240 --> 0:19:04.199 to them very quickly, easily ask more questions and make 0:19:04.240 --> 0:19:07.120 insights and so this long COVID research that we've done 0:19:07.240 --> 0:19:09.200 is really a good example of how the twenty three 0:19:09.280 --> 0:19:11.639 model works, that we could put out a survey to 0:19:11.680 --> 0:19:14.600 our customers, collect a lot of information and make really 0:19:14.680 --> 0:19:18.760 interesting and meaningful findings. So one of the things a 0:19:18.800 --> 0:19:20.840 couple of things here that are are interesting, and again 0:19:20.920 --> 0:19:23.840 being female, it's obviously top of my mind. Over seventy 0:19:23.880 --> 0:19:26.480 eight percent of those diagnosed with long COVID were women, 0:19:27.480 --> 0:19:32.639 clearly disproportionately impacting women. People with depression diagnosed depression and 0:19:32.720 --> 0:19:35.639 anxiety are more than twice as likely to have it, 0:19:35.760 --> 0:19:39.920 so twice increasing their risk um. Half of those people are, 0:19:40.240 --> 0:19:43.680 you know, having persistent symptoms for over six months, and 0:19:43.800 --> 0:19:46.240 about ten percent or having it for over a year, 0:19:47.080 --> 0:19:49.280 so it's you know, all this data comes from about 0:19:49.280 --> 0:19:52.439 a hundred thousand customers who reported that they had COVID, 0:19:52.840 --> 0:19:55.439 over twenty six thousand that said that they had long COVID, 0:19:56.000 --> 0:19:58.240 So we have a lot of data here and it's 0:19:58.280 --> 0:20:02.000 definitely concerning that it's again impact so many women. Anxiety 0:20:02.560 --> 0:20:05.240