1 00:00:00,800 --> 00:00:04,040 Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside 2 00:00:04,040 --> 00:00:06,920 Speaker 1: my co host Matt Miller. Every business day we bring 3 00:00:06,960 --> 00:00:11,520 Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along 4 00:00:11,560 --> 00:00:15,600 Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast 5 00:00:15,600 --> 00:00:18,479 Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and 6 00:00:18,480 --> 00:00:22,239 Speaker 1: at Bloomberg dot com slash podcast. I want to get 7 00:00:22,320 --> 00:00:25,040 Speaker 1: right to our next guest, Danielle di Martino, Booth CEO 8 00:00:25,040 --> 00:00:29,000 Speaker 1: and chief strategist at Quill Intelligence, former advisor at the 9 00:00:29,000 --> 00:00:32,200 Speaker 1: Federal Reserve Bank of Dallas, as well as amongst lots 10 00:00:32,200 --> 00:00:34,680 Speaker 1: of other things she does, and folks, I recommend you 11 00:00:34,680 --> 00:00:37,920 Speaker 1: follow Danielle on socialists, got a really strong social media 12 00:00:38,000 --> 00:00:40,600 Speaker 1: game and the people she follows I now follow and 13 00:00:40,720 --> 00:00:42,720 Speaker 1: vice versas, so help him you get a little bit 14 00:00:42,720 --> 00:00:45,600 Speaker 1: smarker on what's going on out there. Danielle, thanks so 15 00:00:45,680 --> 00:00:48,160 Speaker 1: much for taking the time here on Christmas Eve Eve. 16 00:00:48,880 --> 00:00:52,480 Speaker 1: What is your outlook for this market going into two 17 00:00:52,479 --> 00:00:55,560 Speaker 1: We've got Amicron, we've got a rising interest rate environment, 18 00:00:55,600 --> 00:00:57,920 Speaker 1: a lot of cross currents out there. Can you kind 19 00:00:57,920 --> 00:00:59,760 Speaker 1: of just give us a sense of what we should 20 00:00:59,760 --> 00:01:02,760 Speaker 1: be thinking king about for next year? Well, I think 21 00:01:02,840 --> 00:01:06,440 Speaker 1: markets uh rightly have moved on from Amy crom at 22 00:01:06,520 --> 00:01:08,800 Speaker 1: least for the moment, it does not seem to have 23 00:01:08,840 --> 00:01:13,160 Speaker 1: disrupted UH, whether you're talking about travel or services consumption. 24 00:01:13,240 --> 00:01:17,000 Speaker 1: We we saw come in very hot this morning. Um, 25 00:01:17,040 --> 00:01:19,840 Speaker 1: but there is something be said also for all of 26 00:01:19,840 --> 00:01:24,160 Speaker 1: the goods purchases that have been pulled forward in and 27 00:01:24,200 --> 00:01:26,640 Speaker 1: the fact that we will not be having any more 28 00:01:27,000 --> 00:01:31,399 Speaker 1: fiscal impulse going into the first quarters, so that concerns me. 29 00:01:31,480 --> 00:01:35,720 Speaker 1: We did see the weakest goods consumption that we've seen 30 00:01:35,920 --> 00:01:39,240 Speaker 1: in in well over a year. So these things raise 31 00:01:39,319 --> 00:01:42,640 Speaker 1: red flags when we are a consumption driven economy and 32 00:01:42,640 --> 00:01:46,200 Speaker 1: you're seeing goods consumption contract and that's at a normal, 33 00:01:46,360 --> 00:01:50,320 Speaker 1: non a level that's not even adjusted for inflation. Danielle Uh, 34 00:01:50,440 --> 00:01:52,680 Speaker 1: I want to really stick with that topic of consumption 35 00:01:52,760 --> 00:01:55,480 Speaker 1: here and and follow up on a story that's about 36 00:01:55,560 --> 00:01:57,320 Speaker 1: a year and a half hold. As I'm looking at 37 00:01:57,360 --> 00:02:00,040 Speaker 1: my byline, I worked with a collaborated with story with 38 00:02:00,120 --> 00:02:04,560 Speaker 1: Liz McCormick, who quoted you talking about essentially the savings rate, 39 00:02:04,600 --> 00:02:07,200 Speaker 1: which was likened at one point to what you saw 40 00:02:07,240 --> 00:02:09,240 Speaker 1: in the Great Depression. This idea that in this kind 41 00:02:09,240 --> 00:02:11,760 Speaker 1: of pandemic era, a lot of people were holding onto 42 00:02:11,760 --> 00:02:14,120 Speaker 1: those savings at a rate that you didn't even see 43 00:02:14,840 --> 00:02:17,680 Speaker 1: when there was that kind of depression era austerity. I 44 00:02:17,720 --> 00:02:20,400 Speaker 1: want to ask you about how the savings rate is 45 00:02:20,480 --> 00:02:24,160 Speaker 1: dropping and what the impact of that on consumption is 46 00:02:24,200 --> 00:02:28,000 Speaker 1: and then by extension the broader economy that's you know, 47 00:02:28,000 --> 00:02:30,280 Speaker 1: that's a fantastic question. We're back down to two thousand 48 00:02:30,400 --> 00:02:33,480 Speaker 1: seventeen levels on on the savings rate, as we saw 49 00:02:33,520 --> 00:02:36,919 Speaker 1: in this morning's data, and that is problematic, especially when 50 00:02:36,960 --> 00:02:38,720 Speaker 1: you layer on top of that the fact that we 51 00:02:38,800 --> 00:02:41,720 Speaker 1: know due to New York Federal Reserve data, that the 52 00:02:41,760 --> 00:02:45,080 Speaker 1: bulk of the savings that do survive, that have survived, 53 00:02:45,680 --> 00:02:48,560 Speaker 1: are in the hands of those between sixty five and 54 00:02:48,560 --> 00:02:51,280 Speaker 1: and and older, as as well as those who are 55 00:02:51,280 --> 00:02:55,160 Speaker 1: the wealthiest who have the least propensity to use their savings. 56 00:02:55,440 --> 00:02:58,920 Speaker 1: So again, this this fiscal cliff idea is critical as 57 00:02:58,960 --> 00:03:01,440 Speaker 1: we head into the New York. January fift is going 58 00:03:01,480 --> 00:03:03,480 Speaker 1: to mark the first month that Americans don't receive five 59 00:03:03,919 --> 00:03:06,880 Speaker 1: fifty dollars on average in child tax credit in cash, 60 00:03:07,320 --> 00:03:08,880 Speaker 1: and some of them are going to have to pay 61 00:03:08,919 --> 00:03:11,360 Speaker 1: some of that back when the I R s opens 62 00:03:11,480 --> 00:03:14,480 Speaker 1: up the it's it's window to submit tax returns on 63 00:03:14,600 --> 00:03:17,160 Speaker 1: January thirty one. So a lot of a lot of 64 00:03:17,400 --> 00:03:20,840 Speaker 1: interesting um events occurring in that first month of this year. 65 00:03:21,760 --> 00:03:25,440 Speaker 1: So given that backdrop, Danielle, we've got some pretty clear 66 00:03:26,000 --> 00:03:28,359 Speaker 1: guidance from this Federal Reserve as to how they're thinking 67 00:03:28,360 --> 00:03:32,680 Speaker 1: about their tapering and and the rate structure. Do you 68 00:03:32,720 --> 00:03:36,680 Speaker 1: think the Federal Reserve is getting it right or is 69 00:03:36,720 --> 00:03:39,240 Speaker 1: that narrative that maybe they're still behind the market is 70 00:03:39,280 --> 00:03:43,040 Speaker 1: that's still there. But you can't start out from behind 71 00:03:43,080 --> 00:03:46,320 Speaker 1: and not still be behind. So I mean, unless they 72 00:03:46,480 --> 00:03:48,480 Speaker 1: unless they were to come out at the end of June, 73 00:03:48,520 --> 00:03:50,400 Speaker 1: excuse me, the end of January, their next meeting, which 74 00:03:50,400 --> 00:03:52,520 Speaker 1: is the last week of January, and say you know what, 75 00:03:52,680 --> 00:03:56,119 Speaker 1: the tapers over, We're finished with it um. But they 76 00:03:56,160 --> 00:03:59,080 Speaker 1: could certainly and we'll listen to sad talk. There was 77 00:03:59,120 --> 00:04:01,920 Speaker 1: a fantastic are go on the terminal about Christopher Waller, 78 00:04:02,080 --> 00:04:05,200 Speaker 1: and I recommend everybody read that article because he is 79 00:04:05,240 --> 00:04:09,280 Speaker 1: a different sounding Federals are governor, and of course governors 80 00:04:09,280 --> 00:04:12,440 Speaker 1: have permanent votes. We haven't seen a governor dissent since 81 00:04:12,520 --> 00:04:15,080 Speaker 1: two thousands five, and he seems dead set on that 82 00:04:15,120 --> 00:04:18,760 Speaker 1: March seventeenth launch date for the first rate hike, So 83 00:04:19,000 --> 00:04:21,880 Speaker 1: you know, will they get there, will the will the 84 00:04:21,960 --> 00:04:24,359 Speaker 1: yield curve win? We'll find out. I mean there are 85 00:04:24,400 --> 00:04:27,040 Speaker 1: some people who are saying if yield curve is compressing 86 00:04:27,080 --> 00:04:30,080 Speaker 1: and behaving almost like mid de late cycle, so we 87 00:04:30,120 --> 00:04:33,280 Speaker 1: will see if the yield curve races to the finish line. 88 00:04:33,320 --> 00:04:36,760 Speaker 1: And because the Fed cannot increase interest rates if the 89 00:04:36,800 --> 00:04:39,640 Speaker 1: yield curve is inverted, it's just there's nothing in the 90 00:04:39,680 --> 00:04:42,640 Speaker 1: rule book that would allow for that. So three rate 91 00:04:42,720 --> 00:04:45,480 Speaker 1: hikes in two that is the message we have gotten 92 00:04:45,560 --> 00:04:48,000 Speaker 1: from the Fed. Something he'd mind is since then, we've 93 00:04:48,000 --> 00:04:51,040 Speaker 1: had several emerging market countries continue to hike and hike 94 00:04:51,040 --> 00:04:52,880 Speaker 1: and hike. The Czech Republic I believe is the most 95 00:04:52,880 --> 00:04:55,520 Speaker 1: recent um And we don't need another reminder on what's 96 00:04:55,560 --> 00:04:58,799 Speaker 1: going on with Turkey. Of course, going in the opposite direction, Danielle, 97 00:04:58,839 --> 00:05:01,200 Speaker 1: I really want to ask you what the bond market 98 00:05:01,240 --> 00:05:03,320 Speaker 1: is really thinking here, because it kind of seems like 99 00:05:03,320 --> 00:05:06,560 Speaker 1: when you're looking at pricing, they're pricing in not just 100 00:05:06,800 --> 00:05:09,279 Speaker 1: steeper hikes, but kind of this kind of knee jerk, 101 00:05:09,400 --> 00:05:12,480 Speaker 1: stop start reaction. This idea that the FED might actually 102 00:05:13,320 --> 00:05:16,240 Speaker 1: need to do something and then wait and see and 103 00:05:16,240 --> 00:05:18,360 Speaker 1: then do it again. What is your thought process on 104 00:05:18,400 --> 00:05:23,040 Speaker 1: the bond markets? Take So, I mean the check Republic 105 00:05:23,080 --> 00:05:25,320 Speaker 1: over night raised interest rates by a hundred basis points. 106 00:05:25,320 --> 00:05:27,840 Speaker 1: We were expecting seventy five. And we're seeing some very 107 00:05:27,880 --> 00:05:31,200 Speaker 1: aggressive behavior again to your point outside of Turkey where 108 00:05:31,200 --> 00:05:34,520 Speaker 1: everything's Craig craig, but we're seeing a very aggressive emerging market. 109 00:05:34,760 --> 00:05:37,520 Speaker 1: They have to defend their currencies right now. Um, So 110 00:05:37,560 --> 00:05:40,440 Speaker 1: the question is one of how does the FED react? 111 00:05:40,600 --> 00:05:42,480 Speaker 1: And should the FED be reacting or should the Fed 112 00:05:42,520 --> 00:05:47,240 Speaker 1: be disciplined in its approach maintain that that pace, maintain 113 00:05:47,360 --> 00:05:50,760 Speaker 1: the stability that markets are expecting. Again, I go back 114 00:05:50,800 --> 00:05:52,880 Speaker 1: to the yield curve and the fact that other areas 115 00:05:52,880 --> 00:05:55,000 Speaker 1: of the economy are pulling that long end down. We 116 00:05:55,040 --> 00:05:57,200 Speaker 1: can't seem to get past that that one point five 117 00:05:57,320 --> 00:06:00,280 Speaker 1: zero ceiling on the tenure or it feel like an 118 00:06:00,279 --> 00:06:03,880 Speaker 1: inner and ceiling. So I go back to how aggressive 119 00:06:03,880 --> 00:06:06,880 Speaker 1: the FED can be given what the bond market is 120 00:06:06,920 --> 00:06:10,000 Speaker 1: dictating right now. Hey, Danielle, thank you so much for 121 00:06:10,080 --> 00:06:13,360 Speaker 1: taking the time today. We always appreciate getting your perspective. 122 00:06:13,680 --> 00:06:15,479 Speaker 1: Viewer views, particularly here at this time of years, we 123 00:06:15,520 --> 00:06:18,520 Speaker 1: think about next year. Danielle di Martino Booth. She's a 124 00:06:18,600 --> 00:06:22,800 Speaker 1: CEO and chief strategist at Quill Intelligence, also a former 125 00:06:22,800 --> 00:06:30,159 Speaker 1: advisor at the Federal Reserve Bank of Dallas. One of 126 00:06:30,200 --> 00:06:33,719 Speaker 1: the I guess economic oddities, at least for me, from 127 00:06:33,720 --> 00:06:37,320 Speaker 1: this pandemic has been what some are calling the Great resignation, 128 00:06:37,360 --> 00:06:40,240 Speaker 1: people just leaving the workforce. I don't really have a 129 00:06:40,279 --> 00:06:43,040 Speaker 1: great answer why, but maybe our next guest will and 130 00:06:43,080 --> 00:06:44,760 Speaker 1: give us a sense of how things are working out 131 00:06:44,800 --> 00:06:47,640 Speaker 1: in the labor market. Roll Vr, CEO of pay Corps. 132 00:06:47,640 --> 00:06:50,440 Speaker 1: Pay Corp is a public company went public this year, 133 00:06:50,520 --> 00:06:53,080 Speaker 1: trades on the nastac P y c R. It's kind 134 00:06:53,080 --> 00:06:57,080 Speaker 1: of market cap of five point two billion dollars. RAU, Well, 135 00:06:57,120 --> 00:06:59,440 Speaker 1: thank you so much for joining us here. UM. Your 136 00:06:59,480 --> 00:07:03,080 Speaker 1: company creates human capital management software to help recruit an 137 00:07:03,120 --> 00:07:07,040 Speaker 1: onboard employees as well as other people management tools. Do 138 00:07:07,080 --> 00:07:09,640 Speaker 1: you have a sense, given your history with your customers, 139 00:07:09,720 --> 00:07:14,400 Speaker 1: your clients, where these people went the Great Resignation? Yeah? 140 00:07:14,440 --> 00:07:17,520 Speaker 1: So I think that there's there's two dynamics, UM that 141 00:07:17,560 --> 00:07:20,760 Speaker 1: are happening. First and foremost, you know, since the pandemic, 142 00:07:21,480 --> 00:07:24,600 Speaker 1: UM you know, we're still not back to uh, the 143 00:07:24,680 --> 00:07:26,560 Speaker 1: overall labor market hasn't go back to where it was 144 00:07:26,880 --> 00:07:30,160 Speaker 1: pre COVID uh. And so there's two things that are 145 00:07:30,160 --> 00:07:33,520 Speaker 1: going on. Um, there's less supply in the market, which 146 00:07:33,600 --> 00:07:38,840 Speaker 1: makes you know, each individual job UM in more demand. 147 00:07:39,080 --> 00:07:42,760 Speaker 1: And so people are really re evaluating. People are talking 148 00:07:42,760 --> 00:07:46,000 Speaker 1: about the Great resignation, but from our perspective, it's a 149 00:07:46,040 --> 00:07:50,280 Speaker 1: reevaluation where people are thinking about their current job and hey, 150 00:07:50,320 --> 00:07:53,280 Speaker 1: do I really want that job and is it offering me, 151 00:07:53,640 --> 00:07:56,760 Speaker 1: you know, the right leadership, the right benefits, the right 152 00:07:56,800 --> 00:08:00,440 Speaker 1: pay package. And so we're seeing shortages and some of 153 00:08:00,480 --> 00:08:03,880 Speaker 1: the industries that we all you know, work with every day, 154 00:08:03,920 --> 00:08:07,720 Speaker 1: whether it be retail or food and beverage or hospitality. UM, 155 00:08:07,760 --> 00:08:11,560 Speaker 1: we're seeing significant worker shortages and all of those industries 156 00:08:11,640 --> 00:08:14,640 Speaker 1: because you know, people are reevaluating their future and they're 157 00:08:14,640 --> 00:08:18,280 Speaker 1: deciding to do other things. Yeah, well this is going 158 00:08:18,320 --> 00:08:21,040 Speaker 1: to be a crucial piece of the equation going into two. 159 00:08:21,040 --> 00:08:23,120 Speaker 1: We're looking at a queer rate that's just shy three 160 00:08:23,600 --> 00:08:26,920 Speaker 1: according to latest Jolts data, the highest in history that 161 00:08:26,960 --> 00:08:29,240 Speaker 1: the data goes back to. I really want to talk 162 00:08:29,280 --> 00:08:34,000 Speaker 1: about here why we're actually not necessarily seeing this hit 163 00:08:34,679 --> 00:08:37,240 Speaker 1: some of those retailers to hospitality figures because they are 164 00:08:37,280 --> 00:08:39,800 Speaker 1: still trying to hire, they are still seeing their shortages. 165 00:08:40,320 --> 00:08:43,240 Speaker 1: But somehow those businesses are still operating. Can you connect 166 00:08:43,240 --> 00:08:48,160 Speaker 1: those dots for us? Yeah, I think you know clearly, Um, 167 00:08:48,200 --> 00:08:51,120 Speaker 1: the retailers and hostilities are still operating. I think they're 168 00:08:51,160 --> 00:08:54,320 Speaker 1: operating less effectively than before. I think we're all waiting 169 00:08:54,360 --> 00:08:58,320 Speaker 1: a little longer in lines, you know at retailers, or um, 170 00:08:58,320 --> 00:09:01,680 Speaker 1: waiting a little longer to have dinner, um, those type 171 00:09:01,720 --> 00:09:06,040 Speaker 1: of things. But UM, what's happened is it's forced retailers 172 00:09:06,040 --> 00:09:09,600 Speaker 1: and restaurants UM to try new things to attract employees, 173 00:09:09,800 --> 00:09:13,920 Speaker 1: whether that's flexible work schedules, whether that's you know, on 174 00:09:14,040 --> 00:09:17,920 Speaker 1: demand pay, the ability to get UM their pay you know, 175 00:09:18,360 --> 00:09:20,840 Speaker 1: instead of on a weekly basis or by loot basis. 176 00:09:20,840 --> 00:09:23,439 Speaker 1: Can I get my pay on demand to help pay 177 00:09:23,480 --> 00:09:27,520 Speaker 1: with my bills and and offering you know, better flexibility 178 00:09:27,520 --> 00:09:29,959 Speaker 1: and better benefits across the board. So I think you're 179 00:09:29,960 --> 00:09:36,480 Speaker 1: seeing the cost to employees increasing for retail and hospitality. Uh. 180 00:09:36,520 --> 00:09:39,680 Speaker 1: And so that's become you know, the next issue for 181 00:09:40,080 --> 00:09:43,000 Speaker 1: you know, those industries is the overall costs, which were 182 00:09:43,000 --> 00:09:46,680 Speaker 1: then seeing pushed back onto the consumer. Paul, I don't 183 00:09:46,679 --> 00:09:49,480 Speaker 1: know if you've ordered food like take out to your 184 00:09:49,480 --> 00:09:52,520 Speaker 1: house lately, but I certainly have because I'm a horrible cook. 185 00:09:52,840 --> 00:09:56,120 Speaker 1: But one of the main issues for me has been 186 00:09:56,200 --> 00:09:58,800 Speaker 1: having these very delayed deliveries. And this is such a 187 00:09:58,840 --> 00:10:00,959 Speaker 1: first world problem, right, I'm gonna complain about it on 188 00:10:01,000 --> 00:10:03,520 Speaker 1: the air anyway, But a lot of it tends to 189 00:10:03,520 --> 00:10:06,959 Speaker 1: be because of simply a shortage of food delivery people 190 00:10:07,240 --> 00:10:10,320 Speaker 1: and drivers, for example. So let me ask you here 191 00:10:10,400 --> 00:10:13,360 Speaker 1: about just the effect here on the gig economy, on 192 00:10:13,400 --> 00:10:17,679 Speaker 1: the folks that don't necessarily have a salary job. Yeah. So, 193 00:10:17,760 --> 00:10:21,320 Speaker 1: I mean I think you're seeing again, um, you see 194 00:10:21,360 --> 00:10:24,360 Speaker 1: shortages on on food. I think we've also all seen 195 00:10:24,880 --> 00:10:27,880 Speaker 1: a change in behavior with Uber and Lift than you know, 196 00:10:27,920 --> 00:10:31,400 Speaker 1: pre pandemic in the ability to get an on time ride. Uh. 197 00:10:31,400 --> 00:10:35,319 Speaker 1: And so I think you know, people are definitely moving 198 00:10:35,400 --> 00:10:38,120 Speaker 1: into gig jobs, and we're still seeing that acceleration. I 199 00:10:38,160 --> 00:10:41,920 Speaker 1: don't think it's happening at the rate that's required to 200 00:10:42,080 --> 00:10:46,360 Speaker 1: service the demand shift for either delivery or Uber or 201 00:10:46,440 --> 00:10:49,440 Speaker 1: lift or the type of services that gig supports. And 202 00:10:49,480 --> 00:10:53,360 Speaker 1: so We're seeing the same type of shortages there overall. Um, 203 00:10:53,360 --> 00:10:56,880 Speaker 1: whether it be you know, the traditional employment economy or 204 00:10:56,920 --> 00:11:00,880 Speaker 1: the gig economy, we're facing the same labor issues across 205 00:11:00,920 --> 00:11:03,840 Speaker 1: the board. Roll uh cretty and I we are in 206 00:11:04,080 --> 00:11:09,000 Speaker 1: the Bloomberg headquarters office today, UM, but we're lonely. Are 207 00:11:09,160 --> 00:11:12,920 Speaker 1: people gonna come back to the office? So uh, like 208 00:11:13,320 --> 00:11:17,000 Speaker 1: you know, our perspective is that, UM, we're gonna continue 209 00:11:17,040 --> 00:11:20,640 Speaker 1: to see a mixed environment. UM, you know for the 210 00:11:20,720 --> 00:11:25,520 Speaker 1: foreseeable future. UM, we're probably you know a little overcorrected 211 00:11:25,640 --> 00:11:28,120 Speaker 1: right now. We're the majority of people are working from home. 212 00:11:28,160 --> 00:11:30,640 Speaker 1: I think you know, over the next you know, six 213 00:11:30,720 --> 00:11:33,120 Speaker 1: or twelve months, we'll see more of a mix, some 214 00:11:33,280 --> 00:11:36,520 Speaker 1: return to work, maybe not five days a week. UM. 215 00:11:36,559 --> 00:11:38,880 Speaker 1: You know, at pay Corps as an example, you know, 216 00:11:38,920 --> 00:11:42,320 Speaker 1: we have a virtual first philosophy. UM, and we enable 217 00:11:42,679 --> 00:11:44,640 Speaker 1: you know, our employees to work from home or flex 218 00:11:44,679 --> 00:11:47,040 Speaker 1: into an office in a hotel ing type concept. And 219 00:11:47,080 --> 00:11:49,520 Speaker 1: I think we're gonna see more of that, you know, 220 00:11:49,600 --> 00:11:52,680 Speaker 1: for the foreseeable future. UM. I think you know, when 221 00:11:52,720 --> 00:11:56,480 Speaker 1: we you know, survey our client base, survey our own employees, 222 00:11:56,800 --> 00:12:01,320 Speaker 1: people are saying we want flexibility. UM, we also want 223 00:12:01,880 --> 00:12:04,640 Speaker 1: the connectivity of being in the office and being with 224 00:12:04,679 --> 00:12:07,840 Speaker 1: our coworkers and doing things for the community and those 225 00:12:07,880 --> 00:12:09,880 Speaker 1: types of things. Yeah, it's interesting to see how this 226 00:12:09,960 --> 00:12:13,319 Speaker 1: is going to develop. A vr CEO of pay Corps. 227 00:12:13,320 --> 00:12:21,959 Speaker 1: It's a NASDAC listed stock p y c R. I 228 00:12:22,000 --> 00:12:23,760 Speaker 1: don't know about your pretty but I still go to 229 00:12:23,800 --> 00:12:25,559 Speaker 1: the grocery store. Do you go to grocer store, you 230 00:12:25,559 --> 00:12:27,840 Speaker 1: get your groceries delivered? I do go to the grocery store, 231 00:12:27,840 --> 00:12:29,280 Speaker 1: and let me tell you, it's the worst part of 232 00:12:29,320 --> 00:12:31,600 Speaker 1: my day. See, that's why a lot of people, more 233 00:12:31,600 --> 00:12:33,800 Speaker 1: and more people a getting their groceries delivered in Our 234 00:12:33,840 --> 00:12:37,360 Speaker 1: next guest certainly is in the middle of that. Sha Wang, 235 00:12:37,520 --> 00:12:40,680 Speaker 1: CEO and co founder of Boxed uh symbol b o 236 00:12:41,040 --> 00:12:43,280 Speaker 1: x D on the New York Stock Exchange, joins us 237 00:12:43,280 --> 00:12:45,120 Speaker 1: here say thanks so much for taking the time here. 238 00:12:45,400 --> 00:12:48,160 Speaker 1: First of all, just give us a thirty view of 239 00:12:48,400 --> 00:12:51,080 Speaker 1: your company, uh. And also I think you guys recent 240 00:12:51,120 --> 00:12:55,600 Speaker 1: came public via a spack. Give us the details there. Yeah, 241 00:12:55,600 --> 00:12:57,440 Speaker 1: it's been a it's been a pretty wild year, Paul, 242 00:12:57,520 --> 00:13:00,160 Speaker 1: so Um, we're Boxed. As you mentioned, b o x 243 00:13:00,240 --> 00:13:01,959 Speaker 1: e D is the company name, but bio x d 244 00:13:02,120 --> 00:13:04,000 Speaker 1: s are symbol in the New York sockic Change. So 245 00:13:04,280 --> 00:13:06,320 Speaker 1: we started eight and a half years ago shipping bulk 246 00:13:06,360 --> 00:13:09,960 Speaker 1: consumables to consumers and businesses. So we still do that today, 247 00:13:10,000 --> 00:13:13,400 Speaker 1: but we also sell the technology, including the hardware and 248 00:13:13,400 --> 00:13:16,040 Speaker 1: all the software that powers that e commerce business via 249 00:13:16,080 --> 00:13:18,880 Speaker 1: a software and services business as well. So all that 250 00:13:19,120 --> 00:13:22,400 Speaker 1: is what we do today here are boxed. Well, we 251 00:13:22,400 --> 00:13:25,440 Speaker 1: gotta start talking about your the issues that are of 252 00:13:25,480 --> 00:13:28,640 Speaker 1: course kind of hurting a lot of companies across the board. 253 00:13:28,880 --> 00:13:31,280 Speaker 1: I want to know the ones that are affecting yours, 254 00:13:31,280 --> 00:13:33,480 Speaker 1: primarily when we're talking about inventory, because I'm just look 255 00:13:33,480 --> 00:13:36,120 Speaker 1: at your website here. Looks like you guys deliver things 256 00:13:36,240 --> 00:13:39,079 Speaker 1: in bulk, which must mean there are inventory and storage 257 00:13:39,120 --> 00:13:42,800 Speaker 1: costs involved. Talk to us about that. Yeah, absolutely, So 258 00:13:42,960 --> 00:13:46,360 Speaker 1: we right now are mostly first party merchandiser, so meaning 259 00:13:46,360 --> 00:13:47,840 Speaker 1: we take him into our of the item and we 260 00:13:47,880 --> 00:13:50,720 Speaker 1: sell that item to consumers all around the country. Um 261 00:13:50,760 --> 00:13:54,680 Speaker 1: to Paul's question before, the challenges of and the opportunities 262 00:13:55,800 --> 00:13:57,760 Speaker 1: are the real reason why we went vias back and 263 00:13:57,840 --> 00:14:01,560 Speaker 1: so Um, when you look at our business, traditionally of 264 00:14:01,559 --> 00:14:04,079 Speaker 1: our business pre COVID was B two B and so creaty. 265 00:14:04,120 --> 00:14:06,840 Speaker 1: You can imagine that, you know, as folks stopped going 266 00:14:06,880 --> 00:14:10,040 Speaker 1: into the office, as you know, schools shut down. That 267 00:14:10,120 --> 00:14:11,839 Speaker 1: was very hurtful for our B two B business last 268 00:14:11,920 --> 00:14:14,200 Speaker 1: year to say the least. Um But as a as 269 00:14:14,200 --> 00:14:16,640 Speaker 1: the comy economy opened up a bit, as we're beginning 270 00:14:16,679 --> 00:14:19,960 Speaker 1: to live with COVID, we're seeing a rebound there and 271 00:14:20,040 --> 00:14:22,720 Speaker 1: showing the world what that looks like two three or 272 00:14:22,720 --> 00:14:24,880 Speaker 1: four or five years into the future was something we 273 00:14:24,880 --> 00:14:27,840 Speaker 1: could do by going public vias back. So give us 274 00:14:27,840 --> 00:14:30,000 Speaker 1: a sense here. I mean, we're hearing from a lot 275 00:14:30,040 --> 00:14:33,440 Speaker 1: of different businesses throughout the economy the challenges of the 276 00:14:33,440 --> 00:14:38,560 Speaker 1: supply chain bottlenecks out there. How is that impacting your business? Yeah, 277 00:14:38,600 --> 00:14:41,000 Speaker 1: that's I mean, that is the I mean, it is 278 00:14:41,040 --> 00:14:44,400 Speaker 1: the biggest issue afflicting almost the entire planet uh today 279 00:14:44,400 --> 00:14:47,520 Speaker 1: when it comes to business. Um So, the good thing 280 00:14:47,680 --> 00:14:50,440 Speaker 1: for Boxed is that because we sell consumables, and because 281 00:14:50,440 --> 00:14:53,680 Speaker 1: of overt decisions we made years ago with our private brand, 282 00:14:54,200 --> 00:14:56,520 Speaker 1: almost everything you would buy Unboxed when it comes to 283 00:14:56,520 --> 00:14:59,520 Speaker 1: the consumable products are actually made in the US. Um So, 284 00:14:59,520 --> 00:15:02,200 Speaker 1: when you see those boats lined up off the kind 285 00:15:02,240 --> 00:15:04,560 Speaker 1: of ports all around the world. That doesn't affect us 286 00:15:04,560 --> 00:15:07,040 Speaker 1: as much. But I have to say the shortage of 287 00:15:07,040 --> 00:15:09,880 Speaker 1: of labor supply um that certainly affects us be a 288 00:15:09,960 --> 00:15:13,040 Speaker 1: last mile and so as our last mile partners start 289 00:15:13,120 --> 00:15:16,240 Speaker 1: to um you know, have bilats or begin to raise 290 00:15:16,320 --> 00:15:19,400 Speaker 1: rates because of that shortage and labor um you know, 291 00:15:19,480 --> 00:15:22,240 Speaker 1: that will of course affect us as well as affect 292 00:15:22,280 --> 00:15:25,320 Speaker 1: everyone across the entire industry. Let's talk about who your 293 00:15:25,320 --> 00:15:29,240 Speaker 1: consumer is here, I and I'm Paul, I guess lives 294 00:15:29,240 --> 00:15:33,720 Speaker 1: in the suburbs, like I live in the city here 295 00:15:33,920 --> 00:15:35,840 Speaker 1: in a very small studio, I might add, with a 296 00:15:35,840 --> 00:15:38,360 Speaker 1: puppy who is adorable. But um, what I want to 297 00:15:38,360 --> 00:15:41,680 Speaker 1: really want to ask you here is what is the 298 00:15:41,720 --> 00:15:43,920 Speaker 1: difference in your consumer base? Because if you're talking about 299 00:15:44,000 --> 00:15:46,400 Speaker 1: essentially bulk deliveries, I don't know if I have room 300 00:15:46,440 --> 00:15:49,040 Speaker 1: in my studio to put that. So I'm curious because 301 00:15:49,040 --> 00:15:51,960 Speaker 1: I'm looking at some notes here, and your headquarters essentially 302 00:15:51,960 --> 00:15:54,120 Speaker 1: in New York City, your fulfilment centers are across the 303 00:15:54,160 --> 00:15:56,480 Speaker 1: country in Dallas, by the way, which I might add, 304 00:15:56,480 --> 00:15:58,640 Speaker 1: I am from. So talk to us about the kind 305 00:15:58,640 --> 00:16:03,000 Speaker 1: of separation those diversions between say those city dwellers versus 306 00:16:03,040 --> 00:16:06,359 Speaker 1: those the country folks that are not in New York City. 307 00:16:06,840 --> 00:16:08,560 Speaker 1: That's such a great question. And the reason why I 308 00:16:08,600 --> 00:16:10,520 Speaker 1: was laughing is because you know, I would imagine if 309 00:16:10,520 --> 00:16:12,880 Speaker 1: we went back in time. Uh. And you know, in 310 00:16:12,920 --> 00:16:14,840 Speaker 1: the big toilet paper crunch of twenty twenty, and I 311 00:16:14,880 --> 00:16:18,880 Speaker 1: showed up with boilet papers the apartment. Yeah, I was creating. 312 00:16:19,000 --> 00:16:20,600 Speaker 1: I'm sure even though you're in the studio, I'm sure 313 00:16:20,640 --> 00:16:22,280 Speaker 1: you'd be like, all right, we're gonna touch us this 314 00:16:22,360 --> 00:16:26,280 Speaker 1: into my apartment somehow. Um. But um, you know, joking 315 00:16:26,280 --> 00:16:28,360 Speaker 1: aside kind of what we see and what shocked a 316 00:16:28,360 --> 00:16:29,920 Speaker 1: lot of folks when we did our road show was 317 00:16:29,960 --> 00:16:33,240 Speaker 1: that UM, at our last read of our demographic, almost 318 00:16:33,240 --> 00:16:38,240 Speaker 1: seventy of that audience UM surveyed is either in kind 319 00:16:38,240 --> 00:16:41,040 Speaker 1: of deep suburbs or in rural America. Uh. And so 320 00:16:41,080 --> 00:16:44,160 Speaker 1: these are folks that don't live within a thirty sixty 321 00:16:44,240 --> 00:16:47,200 Speaker 1: ninety minute drive of a local warehouse club, so previous 322 00:16:47,240 --> 00:16:49,840 Speaker 1: to us, they were largely shut out of of stocking 323 00:16:49,920 --> 00:16:52,800 Speaker 1: up and saving by doing so. Interesting, So, so, who 324 00:16:52,840 --> 00:16:56,080 Speaker 1: do you really compete against uh day to day? And 325 00:16:56,080 --> 00:17:00,120 Speaker 1: how's that maybe changed during the pandemic Yeah, So what 326 00:17:00,200 --> 00:17:02,200 Speaker 1: you really kind of see from some of the data 327 00:17:02,240 --> 00:17:04,879 Speaker 1: that we've we've been shown is that, um, you know, 328 00:17:04,920 --> 00:17:07,600 Speaker 1: we get pitted against Costco, b J's, and Sam's Club 329 00:17:07,840 --> 00:17:10,000 Speaker 1: a lot. But you know, when you when you hear 330 00:17:10,080 --> 00:17:11,679 Speaker 1: kind of what I just said before about like almost 331 00:17:11,680 --> 00:17:14,760 Speaker 1: sev don't live close to one of those clubs, you 332 00:17:14,800 --> 00:17:16,480 Speaker 1: actually start to see kind of some of the data 333 00:17:16,520 --> 00:17:19,400 Speaker 1: we've had access to, you start to see some overlap 334 00:17:19,400 --> 00:17:24,200 Speaker 1: in the ven diagram with um, traditional supermarkets, dollar stores, 335 00:17:24,720 --> 00:17:27,520 Speaker 1: um uh, and traditional chains like that that you would 336 00:17:27,520 --> 00:17:29,600 Speaker 1: otherwise have only have access to if you live in 337 00:17:29,640 --> 00:17:31,919 Speaker 1: a small town. So one of the big you just 338 00:17:31,960 --> 00:17:35,200 Speaker 1: mentioned Costco. One of the big divergences between or differences 339 00:17:35,240 --> 00:17:38,280 Speaker 1: I should say between say Costco or your average Walmart 340 00:17:38,320 --> 00:17:41,400 Speaker 1: for for example, is product selection. Costco doesn't have as 341 00:17:41,440 --> 00:17:44,159 Speaker 1: big of a product selection as say your Walmart does, 342 00:17:44,200 --> 00:17:47,520 Speaker 1: which has multiple multiple options. Where on that scale do 343 00:17:47,680 --> 00:17:50,680 Speaker 1: you fall in terms of the things that you offer 344 00:17:50,720 --> 00:17:55,080 Speaker 1: to consumers. So that is something that we've really really 345 00:17:55,119 --> 00:17:58,080 Speaker 1: tried to hone over time. So we started off, you know, 346 00:17:58,119 --> 00:17:59,719 Speaker 1: almost eight and a half years ago with just two 347 00:17:59,800 --> 00:18:03,080 Speaker 1: high their products for sale. We're up to closer to 348 00:18:03,160 --> 00:18:06,560 Speaker 1: three thousand these days, Um, your typical you know, warehouse 349 00:18:06,560 --> 00:18:09,280 Speaker 1: club will have you know, between three to five thousand items. 350 00:18:09,480 --> 00:18:12,560 Speaker 1: Your typical supermarket will have closer to hundred thousand, and 351 00:18:12,800 --> 00:18:16,120 Speaker 1: you know, your typical superstar will have way above that. Um. 352 00:18:16,240 --> 00:18:17,639 Speaker 1: But you know where we want to take it, and 353 00:18:17,720 --> 00:18:20,840 Speaker 1: kind of what we set out in our original investor 354 00:18:20,880 --> 00:18:23,280 Speaker 1: presentation in analyst Day was that we're going to take 355 00:18:23,280 --> 00:18:25,080 Speaker 1: the money that we raised close to two hundred million 356 00:18:25,119 --> 00:18:27,640 Speaker 1: dollars and actually grow a sortment because I think there's 357 00:18:28,080 --> 00:18:32,080 Speaker 1: definitely some pockets um of inventory where our customers are saying, hey, 358 00:18:32,520 --> 00:18:34,879 Speaker 1: you know I already buy hundred dollars worth of stuff 359 00:18:34,880 --> 00:18:36,840 Speaker 1: for you from you on an average shop if you 360 00:18:36,920 --> 00:18:39,000 Speaker 1: only had X, Y and Z, I would have thrown 361 00:18:39,040 --> 00:18:40,640 Speaker 1: it in the basket, but you didn't carry it. So 362 00:18:40,880 --> 00:18:43,359 Speaker 1: that's a real opportunity for us in the coming years. 363 00:18:43,400 --> 00:18:47,120 Speaker 1: So talk to us about this use of capital again, UM, 364 00:18:47,200 --> 00:18:51,440 Speaker 1: broadening your your selection of goods. What other drivers are 365 00:18:51,480 --> 00:18:55,280 Speaker 1: you looking for for your business? Yeah, so you know 366 00:18:55,560 --> 00:18:58,399 Speaker 1: what we It's it's funny because you know, yesterday we 367 00:18:58,480 --> 00:19:01,000 Speaker 1: rang the bell at the Stock Exchange, immediately came back 368 00:19:01,000 --> 00:19:02,679 Speaker 1: to the office and got right back to work with 369 00:19:02,760 --> 00:19:06,600 Speaker 1: the management off site or on site off site UM, 370 00:19:06,640 --> 00:19:09,680 Speaker 1: and what we talked about was basically making that original 371 00:19:09,760 --> 00:19:12,400 Speaker 1: investor presentation come true. We want to be a management 372 00:19:12,400 --> 00:19:14,280 Speaker 1: team that says he was what we presented to you 373 00:19:14,480 --> 00:19:16,760 Speaker 1: and this is exactly what we delivered. And so to 374 00:19:16,880 --> 00:19:19,480 Speaker 1: the question Paul, it was three main levers in BBC 375 00:19:19,520 --> 00:19:22,520 Speaker 1: B two C. One was growing up brand because you know, 376 00:19:22,920 --> 00:19:26,159 Speaker 1: it's decently well known in New York City, but you 377 00:19:26,200 --> 00:19:28,560 Speaker 1: know when you go across the country, you know, unaided 378 00:19:28,560 --> 00:19:32,680 Speaker 1: awareness is still rather low for Boxed. So marketing investment 379 00:19:33,080 --> 00:19:35,960 Speaker 1: too is increase of assortment, so whether it's healthy in 380 00:19:36,080 --> 00:19:39,440 Speaker 1: organics or baby or other products that were not very strong, 381 00:19:39,520 --> 00:19:43,080 Speaker 1: and that's definitely another lever. And then the third is 382 00:19:43,240 --> 00:19:45,560 Speaker 1: UM some of the subscription and loyalty programs that we 383 00:19:45,600 --> 00:19:48,480 Speaker 1: have to increase retention. So those are three levers that 384 00:19:48,480 --> 00:19:50,600 Speaker 1: we're going to pull this year. Cha, thanks so much 385 00:19:50,600 --> 00:19:58,840 Speaker 1: for joining us. Really appreciate learning about the story there. Well, 386 00:19:58,880 --> 00:20:01,639 Speaker 1: despite this me Kron variant, what I'm going to be 387 00:20:01,680 --> 00:20:04,359 Speaker 1: busy doing this weekend is booking some ski trips for 388 00:20:04,440 --> 00:20:06,760 Speaker 1: this winter and spring. A couple of my faves I'm 389 00:20:06,800 --> 00:20:09,840 Speaker 1: looking at our Squaw Valley in Lake Taho. It's now 390 00:20:09,880 --> 00:20:12,800 Speaker 1: been renamed Palisades Tahoe. We'll leave that for another time 391 00:20:12,840 --> 00:20:16,400 Speaker 1: and discussion. Also looking at another favorite steamboat springs out 392 00:20:16,440 --> 00:20:18,679 Speaker 1: in Colorado. And guess what, We're going to talk to 393 00:20:18,720 --> 00:20:21,080 Speaker 1: the guy who actually runs all that stuff, Rusty Gregory, 394 00:20:21,240 --> 00:20:24,680 Speaker 1: chief executive officer for i'll Terra Mountain Company. Rusty, I'm 395 00:20:24,680 --> 00:20:27,880 Speaker 1: booking my trips. I'm looking. I'm not letting omikron kind 396 00:20:27,880 --> 00:20:32,360 Speaker 1: of slow me down. What's your view of this ski season? Well, 397 00:20:32,400 --> 00:20:36,280 Speaker 1: you know, we're very optimistic, much better shape than we 398 00:20:36,280 --> 00:20:39,480 Speaker 1: were last year when there was a lot of unknowns 399 00:20:39,520 --> 00:20:43,480 Speaker 1: about the pandemic. This year less so and uh and weather. 400 00:20:43,480 --> 00:20:45,639 Speaker 1: It is hitting the west Wood a vengeance. I'm actually 401 00:20:45,680 --> 00:20:48,679 Speaker 1: sitting at Mammoth Mountain. It's no three ft overnight and 402 00:20:48,720 --> 00:20:51,600 Speaker 1: that dorm is on its way to Utah and to Colorado. 403 00:20:51,680 --> 00:20:55,199 Speaker 1: So very excited. Russy, I want to ask you about 404 00:20:55,480 --> 00:20:58,639 Speaker 1: just kind of the next five years. Are you a 405 00:20:58,680 --> 00:21:03,200 Speaker 1: sci I'm not a sky not necessarily have a I'm 406 00:21:03,200 --> 00:21:05,359 Speaker 1: gonna work on that, Rusty, see if I can get 407 00:21:05,920 --> 00:21:07,880 Speaker 1: We'll have to do a little, a little field trip 408 00:21:07,920 --> 00:21:12,160 Speaker 1: about to Colorado. Well, I want to ask you about 409 00:21:12,160 --> 00:21:14,399 Speaker 1: the next five years here. Let's say there are more variants. 410 00:21:14,440 --> 00:21:16,960 Speaker 1: Let's say there is more of these kind of COVID 411 00:21:17,000 --> 00:21:19,680 Speaker 1: issues where it does require perhaps staying at home, working 412 00:21:19,680 --> 00:21:21,960 Speaker 1: from home for a few weeks at a time. As 413 00:21:22,160 --> 00:21:24,159 Speaker 1: you start to see cases kind of ebb and flow, 414 00:21:24,760 --> 00:21:27,960 Speaker 1: what is the take from I'm gonna say the skiing industry. 415 00:21:28,000 --> 00:21:30,120 Speaker 1: I want to leave it to you, but skiing industry 416 00:21:30,119 --> 00:21:34,200 Speaker 1: on how to deal with something like that, Well, COVID 417 00:21:34,240 --> 00:21:37,600 Speaker 1: has created a tremendous amount of disruption for everybody. It's 418 00:21:37,720 --> 00:21:40,600 Speaker 1: very difficult to look out two weeks much more than 419 00:21:40,760 --> 00:21:43,560 Speaker 1: five years. But the idea of people working at home 420 00:21:44,359 --> 00:21:48,800 Speaker 1: and being a bit more in charge of exactly how 421 00:21:48,840 --> 00:21:51,680 Speaker 1: they work, when they work, where they work, I think 422 00:21:51,760 --> 00:21:54,760 Speaker 1: fits in nicely to skiing in general. Many people have 423 00:21:54,840 --> 00:21:59,440 Speaker 1: moved to ski resorts and those uh, those are those 424 00:21:59,480 --> 00:22:02,680 Speaker 1: people are on zoom calls at the resorts themselves and 425 00:22:03,200 --> 00:22:06,919 Speaker 1: at their homes, and it also gives them more flexibility 426 00:22:07,000 --> 00:22:10,880 Speaker 1: during the midweek. On one hand, when you're working at home, 427 00:22:11,160 --> 00:22:13,000 Speaker 1: you're often called on to work at all sorts of 428 00:22:13,040 --> 00:22:15,800 Speaker 1: odd hours. On the other hand, you have you have 429 00:22:15,960 --> 00:22:18,560 Speaker 1: time off that you didn't have before when everybody was 430 00:22:18,600 --> 00:22:22,119 Speaker 1: going to the same parking garage and the same office cubicles. 431 00:22:22,200 --> 00:22:25,840 Speaker 1: So our business during the midweek during the pandemic has 432 00:22:25,840 --> 00:22:30,080 Speaker 1: been up considerably. And uh, you know, people figure out 433 00:22:30,240 --> 00:22:32,280 Speaker 1: a way to do the things that they need to 434 00:22:32,280 --> 00:22:34,199 Speaker 1: do and the things they love to do. And skiing 435 00:22:34,359 --> 00:22:37,520 Speaker 1: is one of those things. Outdoor sport, something you can 436 00:22:37,520 --> 00:22:41,320 Speaker 1: do with others safely, and it uh, you know, I 437 00:22:41,359 --> 00:22:44,679 Speaker 1: think it can deal with a disruption like most of 438 00:22:44,680 --> 00:22:47,600 Speaker 1: the rest of our economy over time. Rusty, I'm I'm 439 00:22:47,600 --> 00:22:50,000 Speaker 1: looking at the weather map now and you know the 440 00:22:50,000 --> 00:22:52,880 Speaker 1: West Coast is just getting dumped with snow and rain, 441 00:22:52,920 --> 00:22:55,080 Speaker 1: depending upon where where you are. So hopefully that will 442 00:22:55,119 --> 00:22:57,080 Speaker 1: help out our good friends in California with a drought. 443 00:22:57,119 --> 00:22:59,320 Speaker 1: But talk to us about climate change and how that's 444 00:22:59,400 --> 00:23:01,760 Speaker 1: impacting your business. A lot of folks are concerned about 445 00:23:02,520 --> 00:23:05,600 Speaker 1: they just won't be as much snow or as good snow. 446 00:23:06,000 --> 00:23:07,679 Speaker 1: How do you guys think about that? And you know, 447 00:23:07,800 --> 00:23:12,240 Speaker 1: including snowmaking. I guess well, we are a bit the 448 00:23:12,240 --> 00:23:14,600 Speaker 1: canary in the coal mine. Uh, you know, we we 449 00:23:14,640 --> 00:23:17,760 Speaker 1: are dependent on whether and you know, we really sell 450 00:23:17,840 --> 00:23:21,439 Speaker 1: the joy of mother nature, and that's a that's very 451 00:23:21,480 --> 00:23:23,800 Speaker 1: important for us. So it's a concern for us and 452 00:23:23,960 --> 00:23:27,000 Speaker 1: something that's very important for us to play a leading 453 00:23:27,119 --> 00:23:31,320 Speaker 1: role in terms of environmental responsibility. From a business standpoint. 454 00:23:32,000 --> 00:23:34,040 Speaker 1: Part of the answer to that is to have a 455 00:23:34,119 --> 00:23:37,439 Speaker 1: large portfolio of assets that allows us to distribute our 456 00:23:37,480 --> 00:23:42,119 Speaker 1: weather risk over various regions globally and UH and also 457 00:23:42,160 --> 00:23:44,920 Speaker 1: to offer our guests a product that allows them to 458 00:23:44,960 --> 00:23:48,960 Speaker 1: hedge their risk to the extent that, whether is not 459 00:23:49,080 --> 00:23:51,439 Speaker 1: as good as snow is not as plentiful in the 460 00:23:51,520 --> 00:23:54,040 Speaker 1: area they typically go in on the icon past, they 461 00:23:54,080 --> 00:23:57,400 Speaker 1: can go to any one of our our forty eight 462 00:23:57,440 --> 00:24:01,600 Speaker 1: resorts and UH and enjoy themselves. So, you know, it's 463 00:24:01,640 --> 00:24:04,359 Speaker 1: something that none of us exactly know what's going to happen, 464 00:24:04,400 --> 00:24:06,840 Speaker 1: but whether it's more volatile than it was, and in 465 00:24:06,840 --> 00:24:09,560 Speaker 1: this case, it's brought a tremendous amount of snow to 466 00:24:09,600 --> 00:24:11,800 Speaker 1: the West and people will be joining the enjoying that 467 00:24:11,880 --> 00:24:15,040 Speaker 1: here in the in the days and weeks to come. Russie, 468 00:24:15,040 --> 00:24:17,320 Speaker 1: how are your bookings looking forward for this season and 469 00:24:17,760 --> 00:24:22,960 Speaker 1: kind of how has the the restricted international travel affected 470 00:24:22,960 --> 00:24:27,520 Speaker 1: your business? You know, it's uh yet to be determined 471 00:24:27,560 --> 00:24:30,400 Speaker 1: exactly what international travel is going to do this year. 472 00:24:30,400 --> 00:24:32,399 Speaker 1: I'm sure that we'll be down in our resorts that 473 00:24:32,480 --> 00:24:39,119 Speaker 1: are more dependent on destination travel overseas from overseas, but 474 00:24:39,240 --> 00:24:45,800 Speaker 1: here domestically, our bookings of are incredibly strong, the most 475 00:24:45,840 --> 00:24:48,400 Speaker 1: I've been in a business. I hate to tell your 476 00:24:48,440 --> 00:24:51,400 Speaker 1: listeners how old I am, but well over forty years 477 00:24:51,480 --> 00:24:54,560 Speaker 1: and I've never seen this much demand. Ever. People want 478 00:24:54,600 --> 00:24:57,320 Speaker 1: to break out of their houses and they're downstairs basements, 479 00:24:57,359 --> 00:25:00,240 Speaker 1: away from their zoom calls and get outside, and they're 480 00:25:00,240 --> 00:25:04,919 Speaker 1: certainly booking up for this winter and very very strong fashion. 481 00:25:05,720 --> 00:25:07,960 Speaker 1: How about inflation? Here are you guys? Actually, I really 482 00:25:07,960 --> 00:25:09,639 Speaker 1: want to talk about labor because you know, when I 483 00:25:09,680 --> 00:25:12,399 Speaker 1: get on the ski left often it's an international person 484 00:25:12,440 --> 00:25:13,960 Speaker 1: helping me get on the ski lift, and lots of 485 00:25:14,040 --> 00:25:17,479 Speaker 1: international labor outside the US talked to us about your 486 00:25:17,560 --> 00:25:21,800 Speaker 1: labor situation. You know, like all the rest of the 487 00:25:21,960 --> 00:25:24,520 Speaker 1: businesses in the in the US, labor has been very 488 00:25:24,560 --> 00:25:29,200 Speaker 1: difficult to find um and uh, you know correctly, so 489 00:25:29,400 --> 00:25:32,080 Speaker 1: wages are higher, much higher than they have been in 490 00:25:32,119 --> 00:25:36,720 Speaker 1: the past. We've been fortunate. We've filled up to somewhere 491 00:25:36,760 --> 00:25:40,520 Speaker 1: between eight and of our our staffing rosters. At each 492 00:25:40,560 --> 00:25:43,600 Speaker 1: one of our resorts, and so we're starting off the 493 00:25:43,680 --> 00:25:46,920 Speaker 1: season in very good shape. And uh, for our big 494 00:25:46,920 --> 00:25:51,520 Speaker 1: concern is to keep them healthy and to keep them, 495 00:25:51,560 --> 00:25:54,000 Speaker 1: you know, at work in a way that's comfortable for 496 00:25:54,080 --> 00:25:56,880 Speaker 1: them socially distance enough so that they can come back 497 00:25:56,920 --> 00:26:01,320 Speaker 1: each day wearing masks where appropriate indoors. And so right 498 00:26:01,359 --> 00:26:03,400 Speaker 1: now we're looking good on the labor side, and we'll 499 00:26:03,440 --> 00:26:06,240 Speaker 1: see where where things go this winter. But it's a 500 00:26:06,680 --> 00:26:09,360 Speaker 1: you know, the ski industry is a person to person business, 501 00:26:09,400 --> 00:26:12,240 Speaker 1: and we rely on our people in the front lines 502 00:26:12,280 --> 00:26:14,439 Speaker 1: and they do a great job. Yep, they absolutely do 503 00:26:14,440 --> 00:26:17,080 Speaker 1: all right, Rusty, thanks so much for joining us, Rusty Gregory, 504 00:26:17,119 --> 00:26:20,680 Speaker 1: chief executive officer for I'll Tear Up Mountain Company. Thanks 505 00:26:20,680 --> 00:26:24,160 Speaker 1: for listening to the Bloomberg Markets podcast. You can subscribe 506 00:26:24,160 --> 00:26:27,920 Speaker 1: and listen to interviews at Apple Podcasts or whatever podcast 507 00:26:27,920 --> 00:26:31,480 Speaker 1: platform you prefer. I'm Matt Miller. I'm on Twitter at 508 00:26:31,520 --> 00:26:35,159 Speaker 1: Matt Miller seventy three. On ball Sweeney, I'm on Twitter 509 00:26:35,200 --> 00:26:38,000 Speaker 1: at pt Sweeney. Before the podcast, you can always catch 510 00:26:38,119 --> 00:26:39,640 Speaker 1: us worldwide at Bloomberg Radio.