WEBVTT - Bloomberg Businessweek Weekend - May 16th, 2020 0:00:02.160 --> 0:00:06.400 This is Bloomberg Business Week from Bloomberg Radio. Hi, I'm 0:00:06.480 --> 0:00:08.799 Jason Kelly and I'm Carol Masser. Welcome to the weekend 0:00:08.920 --> 0:00:11.440 edition of Bloomberg Business Week. Over the next couple of hours, 0:00:11.440 --> 0:00:13.080 we're going to bring you some of the most important 0:00:13.119 --> 0:00:16.480 and informative conversations that we had this week. It is 0:00:16.600 --> 0:00:19.520 week nine. Reality check is what we've called it, Jason. 0:00:19.880 --> 0:00:23.880 It's really become a realization among everyone, investors included that 0:00:23.960 --> 0:00:27.760 perhaps they and their expectations about reopening in economic recovery, 0:00:27.800 --> 0:00:30.840 well maybe getting a little too ahead of themselves. Well, 0:00:30.880 --> 0:00:33.159 and that certainly was where the market was, right. I mean, 0:00:33.159 --> 0:00:36.000 we looked at a stock market that was very enthusiastic 0:00:36.080 --> 0:00:39.760 and certainly very optimistic. But over the course of this week, 0:00:39.840 --> 0:00:43.320 You're exactly right. It was reality check week. It was 0:00:43.560 --> 0:00:47.120 Anthony Fauci, the leading doctor, the leading voice from a 0:00:47.120 --> 0:00:50.680 healthcare perspective. It was j Powell, the Chairman of the Fed. 0:00:50.960 --> 0:00:53.000 And I have to say it was a number of 0:00:53.040 --> 0:00:56.160 our guests, CEOs and investors that we spoke with throughout 0:00:56.200 --> 0:00:57.959 the week. Well, and I have to say, and we 0:00:58.080 --> 0:00:59.880 kind of dwelled on this a little bit, but foul 0:01:00.040 --> 0:01:01.960 sheet and Powell. We called it the one to punch 0:01:02.040 --> 0:01:04.200 in terms of reminding us you can't do this too 0:01:04.280 --> 0:01:07.720 fast um too soon in terms of reopenings and talking 0:01:07.760 --> 0:01:11.240 about the protracted economic impact. And I think it really, 0:01:11.360 --> 0:01:13.760 as we said, reality check because of these two. It 0:01:13.760 --> 0:01:16.199 was also another week with a staggering labor report. Number 0:01:16.200 --> 0:01:19.520 of Americans seeking unemployment benefits remained in the millions for 0:01:19.520 --> 0:01:23.480 an eighth straight week, as the economy really just continuing 0:01:23.520 --> 0:01:26.240 to reel from the virus pandemic. So what are the 0:01:26.280 --> 0:01:29.200 biggest names in the world, in the world of business 0:01:29.200 --> 0:01:32.000 specifically think about this. We're going to hear from them. 0:01:32.319 --> 0:01:34.920 A fantastic interview it's in the magazine this week that 0:01:35.000 --> 0:01:39.360 you did with Unilever CEO Alan Joke and old school 0:01:39.520 --> 0:01:43.600 former American Airlines Gairman and CEO Bob crandall right, who 0:01:43.600 --> 0:01:45.680 reminded us the airline industry they've seen a lot of 0:01:45.760 --> 0:01:47.720 up and down cycles, but he said this one is 0:01:47.760 --> 0:01:50.600 not the same. Also, we caught up with Christopher Gavigan. 0:01:50.680 --> 0:01:52.960 He's the co founder of The Honest Company. He's now 0:01:53.040 --> 0:01:55.600 on another mission to bring products that relief stress, which 0:01:55.600 --> 0:01:58.880 we could all certainly use right now, absolutely all that 0:01:58.920 --> 0:02:01.120 and much much more. First up, though, the big story 0:02:01.160 --> 0:02:04.480 this week, one that impacted the equity market, top US 0:02:04.520 --> 0:02:08.760 health officials testifying before the Senate. We talked about him 0:02:08.840 --> 0:02:11.560 just a minute ago, Dr Anthony Fauci, the nation's top 0:02:11.600 --> 0:02:15.440 infectious disease official. He warned against reopening the economy too 0:02:15.480 --> 0:02:20.000 soon and that community is doing so risk new coronavirus outbreaks. 0:02:20.160 --> 0:02:22.280 Safe to say, Jason, that was the testimony that really 0:02:22.360 --> 0:02:24.880 rocked the markets and gave everyone, as we said earlier, 0:02:24.880 --> 0:02:27.360 a reality check. Now, someone who has been one of 0:02:27.360 --> 0:02:30.080 our guiding voices when it comes to the virus is 0:02:30.160 --> 0:02:33.880 Andy PECash. She's a professor of molecular microbiology and immunology 0:02:33.919 --> 0:02:37.320 at Johns Hopkins University Bloomberg School of Public Health. He 0:02:37.520 --> 0:02:39.760 joined us once again, of course, the Bloomberg School of 0:02:39.760 --> 0:02:42.679 Public Health, supported by Michael R. Bloomberg, founder of Bloomberg 0:02:42.720 --> 0:02:45.920 LP and Bloomberg Philanthropies. He stressed, like so many others, 0:02:46.120 --> 0:02:49.040 that testing and contact tracing they're going to make all 0:02:49.080 --> 0:02:51.840 the difference. You know, these are the things that everybody 0:02:51.880 --> 0:02:55.520 should be really aware of. Um, when we pull back 0:02:55.560 --> 0:03:00.360 public health interventions, we expect to see some ca caces 0:03:00.440 --> 0:03:03.040 come up. If we pull them back too soon, the 0:03:03.080 --> 0:03:06.480 magnitude of the cases, the number of cases will be higher. Um. 0:03:06.520 --> 0:03:10.960 If we're not prepared to do testing and really good 0:03:11.160 --> 0:03:14.560 contact tracing to identify the people who have become in 0:03:14.600 --> 0:03:17.840 contact with infected people, we run the risk of having 0:03:18.040 --> 0:03:21.880 a rather large second bounce back wave. UM. So it's 0:03:21.919 --> 0:03:23.960 really going to be important for us to time it 0:03:24.080 --> 0:03:27.079 right and be prepared to pull back these public health 0:03:27.240 --> 0:03:31.200 entrance so we can control a virus at a different level. Right. So, 0:03:31.320 --> 0:03:33.200 I don't want to get political, that is certainly not 0:03:33.280 --> 0:03:35.440 my aim here, but I do wonder coming off a 0:03:35.480 --> 0:03:39.760 press conference yesterday that was predominantly from the President and 0:03:39.840 --> 0:03:43.680 his team about testing and saying we have enough tests 0:03:43.720 --> 0:03:47.360 out there and everything that we need tell me about 0:03:47.440 --> 0:03:51.560 that specific event and if we do indeed are doing 0:03:51.720 --> 0:03:54.040 the right kind of testing, and that we are doing 0:03:54.240 --> 0:03:56.920 enough testing, especially I think twenty four hours or was 0:03:56.960 --> 0:03:59.800 it this morning where Wuhan is talking about testing everybody 0:03:59.800 --> 0:04:03.160 in your city? Yeah, exactly, And and it really becomes 0:04:03.400 --> 0:04:07.280 a question of capacity. Um. You know, we're we're able 0:04:07.320 --> 0:04:09.440 to test in most parts of the country, and again 0:04:09.440 --> 0:04:12.680 this can be different in different localities, right. Um, here 0:04:12.720 --> 0:04:15.000 in Maryland. We're doing a good job of testing the 0:04:15.080 --> 0:04:20.800 symptomatic individuals. UM to turnaround time on tests are fairly good, UM, 0:04:20.839 --> 0:04:23.720 but what we'd like to be is a level above that. 0:04:24.080 --> 0:04:27.560 We want to be able to turnaround tests really fast 0:04:27.640 --> 0:04:29.920 within a day. You want to be able to test 0:04:30.240 --> 0:04:33.159 almost immediately people who have come in contact with the 0:04:33.160 --> 0:04:35.839 pre people who are sick, so that you can catch 0:04:35.920 --> 0:04:39.360 them before they really start showing symptoms and tell them 0:04:39.400 --> 0:04:43.880 to quarantine a little bit earlier. So we need more testing, 0:04:44.000 --> 0:04:47.320 We need more coordination, We need more contact tracing to 0:04:47.360 --> 0:04:50.599 be able to deal with UM the situation when we 0:04:50.640 --> 0:04:54.440 believe our public health interventions. You know, Dr pekash I 0:04:54.440 --> 0:04:57.080 saw a poll this morning that was talking about contact 0:04:57.120 --> 0:05:04.039 tracing specifically, and people's willingness to participate was largely based 0:05:04.120 --> 0:05:07.040 on their enthusiasm for it was largely based on who's 0:05:07.120 --> 0:05:11.080 doing the administering. What's the right method to go about 0:05:11.279 --> 0:05:14.960 doing that in your estimation, so you know the best 0:05:15.000 --> 0:05:20.640 method is to have train individuals who can UM capture 0:05:20.680 --> 0:05:24.840 this information, contact you and give you the correct information 0:05:24.839 --> 0:05:28.400 in terms of what needs to be done. UM. There 0:05:28.440 --> 0:05:31.640 are people at State Public Health and County public Health 0:05:31.680 --> 0:05:35.440 departments who are doing this. UM. We hear at Johns 0:05:35.440 --> 0:05:38.000 Hopkins Bloomer School of Public Health has had a number 0:05:38.040 --> 0:05:42.000 of professors who have started horses to try to educate 0:05:42.000 --> 0:05:43.800 people in terms of how to do that to increase 0:05:43.839 --> 0:05:45.920 the number of people that are capable of doing good 0:05:46.240 --> 0:05:49.320 social contact tracing. So there are some things that you 0:05:49.360 --> 0:05:51.320 need to know, be able to train to be do 0:05:51.480 --> 0:05:54.919 this all quite possible, UM, but you need to invest 0:05:55.040 --> 0:05:57.520 right now to increase those numbers of individuals again, so 0:05:57.560 --> 0:06:00.240 you're ready when you pull back public health interventions. That's 0:06:00.279 --> 0:06:04.840 Andy Pekash, professor of molecular Microbiology and Immunology at Johns 0:06:04.839 --> 0:06:07.880 Hopkins University Bloomberg School of Public Health. As you can 0:06:07.920 --> 0:06:09.720 tell by the name of the Bloomberg School of Public Health, 0:06:09.720 --> 0:06:12.880 it's supported by Mike Bloomberg, the founder of Bloomberg Philanthropy's 0:06:12.880 --> 0:06:17.039 Bloomberg LP, parent of this radio station. Certainly one of 0:06:17.040 --> 0:06:19.400 my favorite voices to talk to Jason, you're listening to 0:06:19.400 --> 0:06:21.680 Bloomberg Business Week coming up. We hear from UNI Lever 0:06:21.800 --> 0:06:24.240 CEO Alan Jope. You know their products, you use them 0:06:24.240 --> 0:06:27.320 every day. This CEO is thinking about everyone affected by 0:06:27.320 --> 0:06:30.440 the crisis. It's in the magazine and it's your big interview, 0:06:30.480 --> 0:06:38.719 Carol Masser, This is Bloomberg. This is Bloomberg Business Week 0:06:38.800 --> 0:06:43.560 with Carol Masser and Jason Kelly from Bloomberg Radio. Well, 0:06:43.600 --> 0:06:45.320 today we're bringing you some of the most important and 0:06:45.320 --> 0:06:48.640 informative conversations we had on our daily Bloomberg Business Week 0:06:48.760 --> 0:06:52.560 radio show, all about the virus and what happens next. Yeah, 0:06:52.600 --> 0:06:54.960 and we're taking you inside the magazine this week featuring 0:06:54.960 --> 0:06:57.840 a debrief with Alan Jope. He's the CEO of Unilever, 0:06:58.320 --> 0:07:02.039 massive consumer products company everything Jason from Dove soap to 0:07:02.080 --> 0:07:03.880 Ben and Jerry's ice cream and so much more. The 0:07:04.040 --> 0:07:06.600 four brands used by about two and a half billion 0:07:06.680 --> 0:07:08.880 people daily. So we talked about a lot of things, 0:07:09.440 --> 0:07:11.400 you know, what they're seeing in terms of what people 0:07:11.400 --> 0:07:14.800 are buying as a result of this shutdown in pandemic. 0:07:15.040 --> 0:07:17.520 But he also talked a lot about balancing profits with 0:07:17.640 --> 0:07:21.200 doing the right thing. We've been operating a multi stakeholder 0:07:21.240 --> 0:07:24.520 model now for quite some time. For about ten years now, 0:07:25.280 --> 0:07:28.360 we've been explicit that we believe that if we look 0:07:28.400 --> 0:07:31.960 after our employees and our customers, if we worry about 0:07:32.040 --> 0:07:35.560 society and the planet, if we take care of our supply, 0:07:35.640 --> 0:07:40.240 our partners that then ultimately our shareholders will be well rewarded. 0:07:40.720 --> 0:07:44.000 And although we didn't honestly think it through that way, 0:07:44.080 --> 0:07:46.080 that was kind of how it played out for us. 0:07:46.120 --> 0:07:48.960 Our reflex was first of all to take care our employees. 0:07:49.520 --> 0:07:51.960 I remember on March the twelfth, which was a Thursday, 0:07:53.000 --> 0:07:56.760 our crisis team saying we should go into an immediate 0:07:57.240 --> 0:08:02.280 global mandatory in death find up lockdown for all office employees. 0:08:02.760 --> 0:08:05.360 At the time it felt a little overwhelming, but it 0:08:05.400 --> 0:08:09.640 was in the interest of protecting our employees. By the Friday, 0:08:09.640 --> 0:08:12.440 when we announced it on the thirteenth, it felt just right. 0:08:12.520 --> 0:08:15.080 By the Saturday, the fourteenth, I wasn't sure if we 0:08:15.080 --> 0:08:17.800 were moving fast enough, and this was ahead of any 0:08:17.800 --> 0:08:21.800 government suggestions of lockdown other than in China. And then 0:08:21.920 --> 0:08:24.640 quickly we turned to our community and you mentioned some 0:08:24.680 --> 0:08:26.840 of the things we tried to do there. Then we 0:08:26.880 --> 0:08:30.160 realize how important the ability to continue to supply, keeping 0:08:30.160 --> 0:08:33.559 our factories running and our supply networks running would be. 0:08:34.360 --> 0:08:37.600 Then we started to worry about cash and cost and 0:08:37.640 --> 0:08:40.160 now at the moment we're trying to anticipate and work 0:08:40.240 --> 0:08:44.160 too short and longer term changes in demand patterns. So 0:08:44.679 --> 0:08:47.600 I think that multi stakeholder thinking, which we've been getting 0:08:47.720 --> 0:08:50.360 used to for a decade UM served as well in 0:08:50.400 --> 0:08:54.520 the initial days of this crisis. How surprised were you though, 0:08:54.559 --> 0:08:58.839 by the scale and pace of the virus? I think 0:08:59.000 --> 0:09:02.880 one of the benefits of being a truly global company, 0:09:02.880 --> 0:09:06.200 and remember sixty of our turnover comes from outside of 0:09:06.640 --> 0:09:10.640 Western Europe and North America. Are are the biggest businesses 0:09:10.679 --> 0:09:15.800 in Unilever beyond the US are India, Brazil, China, Indonesia, 0:09:16.400 --> 0:09:19.880 and so I've been in daily contact with our leader 0:09:19.960 --> 0:09:23.640 in China and our leader in Italy. UM, we had 0:09:23.679 --> 0:09:27.600 had employees impacted by coronavirus, and we had already stood 0:09:27.679 --> 0:09:32.560 up an international crisis management team. Actually, I think before 0:09:32.600 --> 0:09:36.280 the beginning of March, we had sort of anticipated this 0:09:36.400 --> 0:09:41.760 to come as it has. I must say, though, UM, 0:09:41.800 --> 0:09:44.360 I'm very worried about the global South. We've seen this 0:09:44.480 --> 0:09:48.000 play out where you know, the health care systems of 0:09:48.000 --> 0:09:51.319 of Wuhan, of Italy, of the United Kingdom and the 0:09:51.400 --> 0:09:54.920 United States have at best been taxed and in some 0:09:54.960 --> 0:09:58.079 ways been overwhelmed. I'm very worried what's going to happen 0:09:58.080 --> 0:10:01.199 when this really takes hold in the favelas of Brazil, 0:10:01.640 --> 0:10:05.320 the townships of Africa, the slums of India, and the 0:10:05.360 --> 0:10:08.200 refugee camps around the Middle East. I really don't think 0:10:08.200 --> 0:10:12.920 we've seen the worst human suffering yet. As difficult as 0:10:12.960 --> 0:10:16.720 it is to say that, Well, you know, it's interesting 0:10:16.760 --> 0:10:18.439 that you say that, because I think we talked about 0:10:18.440 --> 0:10:21.640 that too. We we look at these developing markets, Um, 0:10:21.679 --> 0:10:25.440 what's your responsibility in helping those markets? And I'm just 0:10:25.440 --> 0:10:28.600 curious the conversations you might be having with leaders in 0:10:28.640 --> 0:10:34.560 those markets. Yeah, I think it's multi factorial, of course. 0:10:34.600 --> 0:10:38.000 I mean our basic responsibility as people do need soap 0:10:38.440 --> 0:10:42.760 and bleach and surface cleaners and basic food stuffs. These 0:10:43.040 --> 0:10:45.320 so is at the moment still the first line of 0:10:45.360 --> 0:10:49.559 defense against this virus. So our first responsibility is to 0:10:49.640 --> 0:10:53.840 keep manufacturing and producing in products. We've noticed most governments 0:10:53.880 --> 0:10:57.640 going through a predictable pattern, which is to underreact and 0:10:57.679 --> 0:11:00.480 then perhaps to overreact to the point where the supply 0:11:00.559 --> 0:11:03.199 chain in the country shuts down. And at that point, 0:11:03.240 --> 0:11:06.200 we've been quite proactive with governments to see you really 0:11:06.240 --> 0:11:09.319 don't want to shut down supplies of essential goods and 0:11:09.360 --> 0:11:11.800 where in the middle of those discussions, right, now in 0:11:11.880 --> 0:11:14.360 the emerging market. You know, I was going to do 0:11:14.440 --> 0:11:16.520 this later, but let me bring in the polling question 0:11:16.600 --> 0:11:18.560 for our breakaway members and I'll read it out for you. 0:11:18.760 --> 0:11:23.200 Um Alan, which group of stakeholders should corporations be prioritizing 0:11:23.360 --> 0:11:29.800 right now? And the choices are employees, communities, shareholders, customers. 0:11:30.400 --> 0:11:33.200 So as everybody weighs in on that, how do you 0:11:33.240 --> 0:11:37.079 see it? I think I know your answer is that 0:11:37.280 --> 0:11:40.560 one answer only question, because in which case it's a 0:11:40.600 --> 0:11:44.360 tough it's a tough call because ultimately, after look after 0:11:44.400 --> 0:11:48.079 all these stakeholders. But it for sure begins with your employees. 0:11:48.120 --> 0:11:54.160 You know, without without showing authentic care for your employees, 0:11:55.280 --> 0:11:57.600 you can't you can't respond to me. I don't do 0:11:57.640 --> 0:12:00.920 anything as the chief executive company. It's our frontline people 0:12:01.200 --> 0:12:04.040 who are making the goods, who are serving our customers. 0:12:04.800 --> 0:12:07.439 So that for me, that's where it starts. Paul seems 0:12:07.480 --> 0:12:11.120 to be kind of I know you almost need you 0:12:11.160 --> 0:12:12.600 need in all of the all of the above. We'll 0:12:12.640 --> 0:12:14.680 talk to you about your work workers because as we 0:12:14.679 --> 0:12:17.040 said at the top, you're taking care of your workers 0:12:17.120 --> 0:12:21.160 right now. UM so you haven't laid anybody off. Does 0:12:21.200 --> 0:12:25.240 it get harder the longer this goes on. Yes, it does. 0:12:25.760 --> 0:12:29.080 We've got about a hundred and fifty thousand employees on 0:12:29.120 --> 0:12:32.400 the payroll, although we think every day there's about three 0:12:32.440 --> 0:12:36.440 million people who work directly and only for Unilever. But 0:12:36.520 --> 0:12:39.520 all those hundred and fifty thousand, there's about seventy thousand 0:12:39.720 --> 0:12:42.600 all of us who are office based. There's about fifty 0:12:42.640 --> 0:12:46.240 thousand of us who are in factories, and there's another 0:12:46.280 --> 0:12:49.160 twenty or thirty thousands who operate in some kind of 0:12:49.200 --> 0:12:53.600 field sales operation, um. And we've had to take very 0:12:53.679 --> 0:12:57.720 different approaches for those different communities and also in different 0:12:57.720 --> 0:13:01.240 geographies at different points in time. So, as I mentioned, 0:13:01.720 --> 0:13:06.959 all office workers are working from home, with the exception 0:13:07.040 --> 0:13:12.559 of China, where we're learning from China how to reopen offices. 0:13:12.600 --> 0:13:15.360 Some dudes and some dawns. That's you know, leave our 0:13:15.400 --> 0:13:17.920 CEO Alan Joe P's the debrief this week in the 0:13:17.960 --> 0:13:22.520 magazine and really talked about the pandemic. Ultimately, Jason kind 0:13:22.559 --> 0:13:25.760 of strengthening his resolve about being a purpose led company 0:13:26.080 --> 0:13:28.920 and being accountable to all stakeholders. Right, we talk about this, 0:13:28.960 --> 0:13:32.319 whether it's your consumers, your shareholders, your community at large, 0:13:32.440 --> 0:13:35.160 your employees. I mean you really, especially in a crisis 0:13:35.200 --> 0:13:38.480 like this, you realize how everybody's impacted and how you 0:13:38.480 --> 0:13:40.719 really need to take care of all of them. Well, 0:13:40.760 --> 0:13:42.880 and it's interesting too, you know, these are words that 0:13:42.920 --> 0:13:45.200 we throw around all the time in sort of quote 0:13:45.240 --> 0:13:49.080 unquote normal times around strategy and especially leadership. And I 0:13:49.120 --> 0:13:52.560 do feel like leadership and leaders are being tested in 0:13:52.920 --> 0:13:56.640 unbelievable ways right now. So really great interview. Glad you 0:13:56.720 --> 0:13:59.400 got some time with Alan job. You're listening to Bloomberg 0:13:59.440 --> 0:14:02.880 Business Week, come up. We talked New England luxury resorts, 0:14:03.280 --> 0:14:07.439 turning the page with president of the Ocean House Management Collection. 0:14:07.520 --> 0:14:10.600 What we're finding the hospitality industry. It may be changed forever. 0:14:10.840 --> 0:14:24.600 This is Bloomberg. This is Bloomberg Business Week with Carol 0:14:24.680 --> 0:14:29.080 Masser and Jason Kelly from Bloomberg Radio. We're bringing you 0:14:29.200 --> 0:14:31.400 some of the most important and informative conversations we had 0:14:31.440 --> 0:14:33.640 throughout the week on our daily radio show. And of 0:14:33.680 --> 0:14:35.800 course Jason all about the virus. Kind of where we 0:14:35.840 --> 0:14:39.480 are today, what it looks like post COVID nineteen and 0:14:39.520 --> 0:14:41.280 I have to say we have to remind everybody all 0:14:41.280 --> 0:14:43.480 of this happening in real time as news continued to 0:14:43.520 --> 0:14:46.480 cross the Bloomberg terminal absolutely and one of our favorite 0:14:46.480 --> 0:14:50.000 conversations was with Daniel Hostetler. He's the president and managing 0:14:50.040 --> 0:14:53.760 director of the Ocean House Management Collection, the owner and 0:14:53.840 --> 0:14:58.560 operator of some absolutely beautiful properties. I felt like in 0:14:58.640 --> 0:15:00.760 talking to him in research in a little bit, I 0:15:00.840 --> 0:15:03.160 got a little bit of a window into what it's 0:15:03.200 --> 0:15:06.080 like to be Carol Massers. It's definitely going to be 0:15:06.120 --> 0:15:11.120 a challenge this summer. Like all New England seaside destinations, 0:15:11.240 --> 0:15:13.880 you know, the majority of these properties up here make 0:15:14.240 --> 0:15:17.880 a good sixty to seventy percent of their business during 0:15:18.080 --> 0:15:21.280 during the height of the summer season. UM. We've we 0:15:21.440 --> 0:15:25.880 were working hard communicating with the staff on a weekly basis. 0:15:26.400 --> 0:15:29.680 Zoom I think is the new go to meeting application, 0:15:29.800 --> 0:15:32.600 and so we get the entire company together every week 0:15:32.800 --> 0:15:35.200 um for an hour to talk about what the plans 0:15:35.240 --> 0:15:40.800 are going forward and keeping them informed. It's a challenging 0:15:41.760 --> 0:15:45.760 process because there aren't a lot of guidelines laid out yet. 0:15:45.800 --> 0:15:48.240 You know, first of all, it's individual state to state, 0:15:48.320 --> 0:15:51.160 and then in our state, like in most states, that 0:15:51.280 --> 0:15:55.680 there are not yet concrete guidelines that say how many 0:15:55.720 --> 0:15:58.440 people can you have in the restaurant, how much capacity 0:15:58.480 --> 0:16:00.760 can you have on the beach or in the hotel. 0:16:00.840 --> 0:16:05.320 So we are sort of crisis planning with with with 0:16:05.320 --> 0:16:08.800 within in a lot of gray area. Mainly we're you know, 0:16:08.840 --> 0:16:11.800 we're spending our time looking to reconcept I think the 0:16:11.800 --> 0:16:15.400 food and beverage operations most of all, because that is 0:16:15.440 --> 0:16:20.320 clearly the area of concentration for the public, right and 0:16:20.400 --> 0:16:22.520 so let's talk about that. So, so what are you 0:16:22.560 --> 0:16:24.960 doing and how do you sort of work through something 0:16:25.000 --> 0:16:27.360 like this? As you say, you know you're taking guidance 0:16:27.400 --> 0:16:31.239 from state officials and local officials, but as a team, 0:16:31.280 --> 0:16:34.960 how do you do this sort of step by step? Well, 0:16:35.080 --> 0:16:38.640 for us, it started with mapping the guest process from 0:16:38.800 --> 0:16:41.240 point of arrival on the driveway at the bellman to 0:16:41.520 --> 0:16:44.600 point of departure again with the bellman, and every step 0:16:44.680 --> 0:16:48.080 in between, and asking ourselves, how are we going to 0:16:48.160 --> 0:16:53.320 conform to the best practices the social distancing and yet 0:16:53.440 --> 0:16:56.760 give a level of luxury service that the guests are 0:16:56.880 --> 0:16:59.600 used to, uh, and how do we make it a 0:16:59.720 --> 0:17:04.080 fun experience? So something as simple as housekeeping, will the 0:17:04.080 --> 0:17:06.440 guests want us in the room twice a day as 0:17:06.480 --> 0:17:09.960 traditionally So we've we've approached that and said, you know, 0:17:10.040 --> 0:17:13.040 we're going to whenever possible, we're going to deliver the 0:17:13.080 --> 0:17:15.400 service that we've always delivered, and we're going to let 0:17:15.440 --> 0:17:18.480 the guests guide us. So we are going to say 0:17:18.520 --> 0:17:21.520 housekeeping services are twice daily, but if you would prefer 0:17:22.080 --> 0:17:24.280 once daily, we can do that. If you would prefer 0:17:24.400 --> 0:17:26.840 just clean towels brought to you every day, we can 0:17:26.880 --> 0:17:30.359 certainly accommodate that as well. It's it's sort of taking 0:17:30.440 --> 0:17:34.919 every touch point and trying to find out how we 0:17:35.040 --> 0:17:37.320 keep the guests safe, how we keep our staff safe 0:17:37.600 --> 0:17:41.159 and still deliver a unique experience. Well, Daniel, I do 0:17:41.200 --> 0:17:43.320 wonder in terms of as you mentioned, you know, for 0:17:43.520 --> 0:17:46.840 food and beverage, you're looking to reconcept it. Does that 0:17:46.960 --> 0:17:51.240 include maybe more folks eating in their rooms or perhaps 0:17:51.240 --> 0:17:53.120 you set up space outside. I mean, do you think 0:17:53.119 --> 0:17:56.280 about that? Yes, we absolutely are doing that. We're looking 0:17:56.320 --> 0:18:00.760 at a unique dining menus, taking restaurants that were traditionals 0:18:00.760 --> 0:18:03.560 sit down and making them fast casual where you walk 0:18:03.600 --> 0:18:06.879 away and pick your own seat. Uh, coming up with 0:18:07.000 --> 0:18:10.000 a picnic platter menu that where you can say, I 0:18:10.040 --> 0:18:11.679 would like to eat on the beach. I would like 0:18:11.720 --> 0:18:14.240 to eat on the croquet lawn and your food will 0:18:14.280 --> 0:18:16.560 be there set on a table for you when you 0:18:16.760 --> 0:18:19.600 when you arrive for dinner that evening, those sorts of 0:18:19.760 --> 0:18:23.439 unique dining experiences that wouldn't be traditional. I do wonder 0:18:23.760 --> 0:18:25.879 about the staff, and you said, you know you're briefing 0:18:25.920 --> 0:18:30.160 them every week and presently hearing their concerns as well. 0:18:30.800 --> 0:18:34.160 How do you make that side of it work as 0:18:34.200 --> 0:18:36.480 an employer, Well, we want to make sure that when 0:18:36.480 --> 0:18:38.879 we bring them back that it's safe for them as well. 0:18:39.000 --> 0:18:41.919 So in the same way we are asking them to 0:18:42.000 --> 0:18:45.240 sign a health pledge that um that our guests know 0:18:45.400 --> 0:18:47.560 that they are taking their temperature before they come to 0:18:47.560 --> 0:18:51.240 work every day and washing their hands every thirty minutes, etcetera. 0:18:51.600 --> 0:18:55.359 We will have signage throughout the hotels asking the guests 0:18:55.359 --> 0:18:58.760 to do similar things to practice social distancing. And you know, 0:18:58.840 --> 0:19:02.920 and we're providing all of the masks and the gloves 0:19:03.000 --> 0:19:05.800 and equipment that the staff needs to feel safe. And 0:19:05.840 --> 0:19:10.240 that's Daniel Hostetler, the president of the Ocean House Management Collection. Carol, 0:19:10.680 --> 0:19:14.280 you had sort of turned me on too, at least remotely. Uh, 0:19:14.280 --> 0:19:17.480 these properties, you've been there, you've sailed there. I mean, 0:19:17.600 --> 0:19:22.119 it's pretty remarkable what they have, but also what they 0:19:22.119 --> 0:19:24.800 are trying to do to get back. Yeah, and they 0:19:24.840 --> 0:19:27.600 definitely tap into the New York tri state area in 0:19:27.640 --> 0:19:29.040 terms of the folks that come to stay at their 0:19:29.080 --> 0:19:31.240 properties over the summer season. I mean that is when 0:19:31.280 --> 0:19:35.600 they get the bulk of their business. Something like they 0:19:35.640 --> 0:19:39.520 expect business to be down, and yet they're mapping out, 0:19:39.640 --> 0:19:42.560 process by process, you know, their way back. And I 0:19:42.600 --> 0:19:44.600 love the way he said it, from arrival with the 0:19:44.640 --> 0:19:47.200 Bellman to departure with the Bellman. They've got to figure 0:19:47.200 --> 0:19:49.840 out every step of the way to make sure that everybody, 0:19:49.880 --> 0:19:51.600 their workers as well as those that come to stay 0:19:51.640 --> 0:19:55.000 at their properties, stay safe. You're listening to Bloomberg bus Wee. 0:19:55.080 --> 0:19:57.760 Coming up, we stay with the travel and hospitality business. 0:19:57.920 --> 0:20:01.360 We catch up with airline industry. Read legend. Bob Crandell, 0:20:01.640 --> 0:20:04.960 the former chairman and CEO of American Airlines, knows that 0:20:05.000 --> 0:20:19.600 industry so well. This is Bloomberg. This is Bloomberg Business 0:20:19.680 --> 0:20:24.280 Week with Carol Masser and Jason Kelly from Bloomberg Radio. Well, 0:20:24.320 --> 0:20:26.040 today we'll bring you some of the most important and 0:20:26.040 --> 0:20:28.959 we hope informative conversations. Carol and I had on our 0:20:29.040 --> 0:20:32.919 daily Bloomberg Business Week radio show all about where we 0:20:33.040 --> 0:20:36.520 are fighting the virus, but also economically and from a 0:20:36.600 --> 0:20:40.800 business perspective, where we go next. That's right, Jason, and 0:20:40.800 --> 0:20:42.520 we had the opportunity. I have to say, this is 0:20:42.520 --> 0:20:44.600 one of those interviews you and I were looking very 0:20:44.640 --> 0:20:47.720 forward to, and it was with Bob Crandall. He's the 0:20:47.720 --> 0:20:51.200 former chairman presidency of American Airlines, ran the airline in 0:20:51.240 --> 0:20:54.720 the eighties and nineties. And what's interesting is someone who 0:20:54.720 --> 0:20:57.719 has seen so many different cycles, so many different regulatory 0:20:57.800 --> 0:21:00.639 environments when it comes to the airline industry. And you know, 0:21:00.640 --> 0:21:02.600 it really struck me when he said, listen, we all 0:21:02.640 --> 0:21:05.359 know up and down cycles. This is like no other 0:21:05.520 --> 0:21:08.480 Listen up. I think you've got to recognize, Caroline. I'm 0:21:08.520 --> 0:21:11.240 sure you do, and I'm sure most people do. This 0:21:11.359 --> 0:21:13.840 is this isn't the usual kind of up and down 0:21:13.960 --> 0:21:16.719 cycle in the airline business. This is this is a 0:21:16.760 --> 0:21:22.440 matter of the general public feeling unsafe and closely packed 0:21:22.520 --> 0:21:27.920 or closely spaced public spaces. So you've seen restaurants take 0:21:28.000 --> 0:21:32.479 a tremendous hit. You've seen cruise ships take a tremendous hit, 0:21:33.080 --> 0:21:38.119 and and airlines, of course, so the penultimate example of 0:21:38.280 --> 0:21:40.960 packing people together to get from point A to point 0:21:40.960 --> 0:21:45.639 B for as little money as possible, nonetheless in a 0:21:45.680 --> 0:21:49.080 reasonably convenient way, as compared to covered wagons for example. 0:21:49.640 --> 0:21:53.399 So so so once you've gotten, now you've got, you 0:21:53.720 --> 0:21:57.080 have to ask yourself how long will it be before 0:21:57.160 --> 0:22:01.840 people feel truly safe? And I think the answer is 0:22:01.920 --> 0:22:04.280 that they're not going to feel truly safe. Most people 0:22:04.320 --> 0:22:06.320 aren't going to feel frus have until hey, we have 0:22:06.359 --> 0:22:10.560 a vaccine, the we have a cure. And see we 0:22:10.680 --> 0:22:16.280 have much much much more systematic testing and tracking than 0:22:16.320 --> 0:22:20.320 we have today. We are we're amateurs in terms of 0:22:20.359 --> 0:22:22.800 testing and tracking. It just hasn't been set up. There 0:22:22.840 --> 0:22:26.119 is no plan. It isn't happening. So until until we 0:22:26.160 --> 0:22:30.439 can solve those three problems and there thereby alleviate the 0:22:30.520 --> 0:22:33.640 public's concern, I think most people are going to stay home. Man. 0:22:33.680 --> 0:22:37.080 Of course, that's very bad for the airline business. And 0:22:37.119 --> 0:22:38.800 so if you were running an airline right now, what 0:22:38.840 --> 0:22:41.680 do you do well, I think I think I would 0:22:41.680 --> 0:22:43.720 be doing I think I think the people that are 0:22:43.800 --> 0:22:47.160