WEBVTT - Bloomberg Businessweek Weekend - May 27th, 2022 0:00:01.040 --> 0:00:05.400 This is Bloomberg Business Week inside from the reporters and 0:00:05.559 --> 0:00:09.200 editors who bring you America's most trusted business magazine, plus 0:00:09.240 --> 0:00:12.520 global business finance and tech news as it happened. Its 0:00:12.600 --> 0:00:16.440 Bloomberg Business Week with Carol Messier and Bloomberg Quick Takes 0:00:16.520 --> 0:00:21.000 Tim Stinovic on Bloomberg Radio. Hi, everyone, welcome to the 0:00:21.040 --> 0:00:23.479 weekend edition of Bloomberg Business Week. Coming up, We're going 0:00:23.560 --> 0:00:26.280 to dive into a special double issue of the magazine, 0:00:26.400 --> 0:00:29.280 much of it centered around the tech Stock reckoning taking 0:00:29.320 --> 0:00:32.800 place in We begin, though, with the story that really 0:00:32.840 --> 0:00:36.280 overshadowed all others this past week, a deadly school shooting 0:00:36.280 --> 0:00:38.800 in Texas that claimed the lives of nineteen children and 0:00:38.920 --> 0:00:44.440 two teachers, now reigniting the debate over gun laws in America. Yeah, 0:00:44.440 --> 0:00:49.760 it definitely was the overarching thinking this week and just thinking, Wow, 0:00:49.800 --> 0:00:52.760 here we are again to help us understand what impact 0:00:52.840 --> 0:00:56.000 this might have on policy in our nation's capital. With 0:00:56.040 --> 0:00:59.000 primaries ongoing and midterm elections on the horizon, we bring 0:00:59.000 --> 0:01:02.600 in Bloomberg Business Week National correspondent Josh Green, who follows politics, 0:01:02.800 --> 0:01:04.760 and Josh, I gotta say when I was listening to 0:01:04.760 --> 0:01:08.240 President Biden speak this week following this mass shooting at 0:01:08.280 --> 0:01:12.160 another school, kids impacted, young kids. You know, it's not 0:01:12.200 --> 0:01:14.560 the first president calling for tougher gun laws, and I 0:01:14.600 --> 0:01:16.800 fear it's not going to be the last. What's the 0:01:16.840 --> 0:01:22.160 political will for tougher gun ownership legislation. Well, there's a 0:01:22.160 --> 0:01:25.800 lot of political will for it among Democrats. But Republicans 0:01:25.800 --> 0:01:28.760 are another story. Um. You know, going back to the 0:01:28.840 --> 0:01:35.040 child massacre in Newtown, Connecticut, Republicans have consistently opposed and 0:01:35.120 --> 0:01:39.480 sylabustered even modest background check bills. And because of the 0:01:39.560 --> 0:01:42.880 rules of the Senate, and because most Republicans don't want 0:01:42.880 --> 0:01:46.280 to pass any kind of gun control legislation even in 0:01:46.280 --> 0:01:48.440 the wake of a massacre like the one we saw 0:01:48.520 --> 0:01:52.160 this week. Uh, gun legislation just dies in the Senate, 0:01:52.360 --> 0:01:56.760 and you know, nothing President Biden does, or or Democrats 0:01:56.760 --> 0:02:00.440 in Congress do, seems to be able to change the effect. 0:02:00.920 --> 0:02:05.240 It's interesting, though, Josh, because we do see a will 0:02:05.400 --> 0:02:09.000 for it from voters. A majority of Americans do support 0:02:09.360 --> 0:02:12.600 stricter gun control laws. This according to a Morning Consule 0:02:12.800 --> 0:02:15.200 poll that was conducted last week that was after the 0:02:15.200 --> 0:02:18.919 shooting in Buffalo, but before the most recent mass shooting, 0:02:19.280 --> 0:02:22.919 said that six Americans support stricter gun control laws. So 0:02:23.520 --> 0:02:27.000 it's the politicians, the Republican politicians who don't support it. 0:02:27.360 --> 0:02:30.239 But the Americans, regardless of where they are on the 0:02:30.240 --> 0:02:33.160 political spectrum on a whole, do yeah. I mean the 0:02:33.240 --> 0:02:37.480 calculus that most Republican politicians make is that pro gun people, 0:02:37.560 --> 0:02:41.239 gun advocates n r A members are much more active 0:02:41.320 --> 0:02:44.480 on the gun issue as voters, um than the broad 0:02:44.680 --> 0:02:47.280 survey of Americans like the one that you discussed, and 0:02:47.280 --> 0:02:51.040 that for for those voters, gun control will be a 0:02:51.120 --> 0:02:54.240 motivating issue to go out and in the case of Republicans, 0:02:54.360 --> 0:02:58.399 vote against anyone who supports gun control bills or narrows 0:02:58.480 --> 0:03:02.720 the ability to own giant arsenals of automatic weapons. Um. 0:03:02.760 --> 0:03:06.160 You know, like we like we've seen in all of 0:03:06.200 --> 0:03:10.639 these recent mass shootings, so most of them, not all 0:03:10.680 --> 0:03:13.280 of them, but most Republicans have been unwilling to vote 0:03:13.760 --> 0:03:16.919 uh in favor of any gun control legislation. Now there 0:03:17.080 --> 0:03:20.600 is a slim, a very slim possibility that something could 0:03:20.680 --> 0:03:22.799 change this time around, and one of the important things 0:03:22.800 --> 0:03:25.160 that happened this week in the Senate is that the 0:03:25.200 --> 0:03:28.240 Democratic Majority Leader Chuck Schumer, instead of just putting up 0:03:28.240 --> 0:03:31.560 a bill, a messaging bill on gun control that he 0:03:31.600 --> 0:03:36.000 knew would fail. Has stepped back and allowed Connecticut Senator 0:03:36.040 --> 0:03:39.080 Chris Murphy, a Democrat who is the senate staunchest gun 0:03:39.120 --> 0:03:43.160 control advocate, to try one more time to cobble together 0:03:43.320 --> 0:03:48.280 a bipartisan coalition UH to tighten background checks so called 0:03:48.320 --> 0:03:51.200 red flag law they're trying to put together. My own 0:03:51.240 --> 0:03:54.160 reporting talking to people is that the chances for this 0:03:54.200 --> 0:03:57.040 bill are very, very slim, but you know, it is 0:03:57.040 --> 0:04:00.720 still alive, and maybe this will be the massacre that uh, 0:04:00.800 --> 0:04:05.280 you know, pushes ten Republicans um into agreeing to support 0:04:05.360 --> 0:04:07.720 some kind of legislation, and that would be a large 0:04:07.800 --> 0:04:10.800 enough number presuming all Democrats went along in order to 0:04:10.800 --> 0:04:14.000 overcome that Senate fellow booster. I mean, Josh, how how 0:04:14.040 --> 0:04:16.680 strong is the gun lobby? I feel like for years 0:04:16.680 --> 0:04:19.400 we talked about how how strong it was and how influential. 0:04:19.400 --> 0:04:20.960 I feel like this is one of those issues, just 0:04:21.000 --> 0:04:24.800 like abortion. It's so divisive within this country and you 0:04:24.839 --> 0:04:28.120 feel strongly about one way or the other. Um. But 0:04:28.120 --> 0:04:32.920 but what is the political strength of the gun lobbying, 0:04:33.080 --> 0:04:36.000 especially when it comes to politicians. Yeah, you know, a 0:04:36.080 --> 0:04:40.159 great measurement of that question is that the National Rifle 0:04:40.240 --> 0:04:46.599 Association is having its convention in Houston this this weekend. Uh. 0:04:46.640 --> 0:04:50.320 And there are a parade of Republican politicians, headlined by 0:04:50.560 --> 0:04:53.839 Texas Center Ted Cruz, who are showing up to speak 0:04:53.880 --> 0:04:56.240 to the n r A. And so I think that's 0:04:56.240 --> 0:04:58.200 a signal. The fact this is going on even in 0:04:58.240 --> 0:05:01.880 the wake of this mass here in Texas shows you 0:05:02.400 --> 0:05:08.279 how powerfully pro gun and pro gun rights um a 0:05:08.320 --> 0:05:12.400 big segment of the Republican Party almost every Republican elected officials, 0:05:12.440 --> 0:05:15.719 certainly at the federal level. UH. And so as long 0:05:15.760 --> 0:05:21.240 as that dynamic exists, as long as Republican politicians believe 0:05:22.040 --> 0:05:24.640 there is a price to be paid for supporting gun 0:05:24.680 --> 0:05:27.760 control legislation, they're simply not going to do it. And 0:05:27.800 --> 0:05:31.279 we've seen that again again and again and again. This 0:05:31.279 --> 0:05:34.600 this is the twenty seven school shooting we had this year. So, 0:05:35.160 --> 0:05:39.040 you know, I think once we got past in the 0:05:39.080 --> 0:05:42.560 massacre in new Town, Connecticut with nothing happening, you know, 0:05:42.600 --> 0:05:45.040 I think at that point Republicans are just sort of 0:05:45.080 --> 0:05:50.279 willing to accept any outcome, no matter how how horrible. Uh, 0:05:50.320 --> 0:05:54.120 you know, how how how how ghastly uh And just say, 0:05:54.240 --> 0:05:56.400 you know, This isn't something we're willing to act on, 0:05:56.560 --> 0:05:59.200 and until that dynamic changes, there really isn't gonna be 0:05:59.200 --> 0:06:02.320 any change at least coming from Washington. Just heartbreaking and 0:06:02.440 --> 0:06:06.080 just unbelievable to see this over and over again. Um, Josh, 0:06:06.120 --> 0:06:08.359 thank you so much, really appreciate your input. That was 0:06:08.360 --> 0:06:11.520 Bloomberg Business Week National correspondent at Josh Green. We should 0:06:11.520 --> 0:06:14.440 note that Michael Bloomberg, owner of Bloomberg LP, the parent 0:06:14.440 --> 0:06:17.080 company of Bloomberg News, is a founder of and helps 0:06:17.120 --> 0:06:19.640 fund every Town for Gun Safety. It's a nonprofit that 0:06:19.680 --> 0:06:23.080 advocates for gun violence prevention and other gun safety measures. 0:06:23.080 --> 0:06:24.719 All right, coming up, we're going to turn our attention 0:06:24.800 --> 0:06:27.479 to markets and the outlook for a global hospitality with 0:06:27.520 --> 0:06:30.760 the CEO of Hyatt Hotels. You're listening to Bloomberg Business Week. 0:06:31.000 --> 0:06:44.560 This is Bloomberg. This is Bloomberg Business Week with Carol 0:06:44.600 --> 0:06:48.839 Masser and Bloomberg Quick Takes Tim Stinovik from Bloomberg Radio. 0:06:50.240 --> 0:06:53.080 Earlier this month, Hyatt Hotels came out with quarterly results 0:06:53.120 --> 0:06:55.680 that were better than expected thanks to strong demand for 0:06:55.800 --> 0:06:58.480 leisure travel and adjusted loss of thirty three cents a 0:06:58.560 --> 0:07:01.920 share in the first quarter. That was narrower than analyst 0:07:02.040 --> 0:07:05.400 estimates and revenue per available room, it's a key hotel 0:07:05.440 --> 0:07:08.320 industry measure known as rev par. It grew by a 0:07:08.400 --> 0:07:10.720 hundred and seven percent year over a year worldwide and 0:07:10.760 --> 0:07:14.400 a hundred and twenty six percent in the US and Canada. Meanwhile, 0:07:14.560 --> 0:07:17.800 last week's spate of week retail forecast raised questions about 0:07:17.840 --> 0:07:20.760 Americans willingness to spend big on travel, at least in 0:07:20.800 --> 0:07:24.080 the near term. Bloomberg News senior markets reporter Kitty Grayfeld 0:07:24.080 --> 0:07:27.480 and I asked high AT President and CEO marcopl Masian 0:07:27.600 --> 0:07:31.119 whether he's concerned about softening demand with the summer travel 0:07:31.200 --> 0:07:35.800 season just ahead. The connection point UH over a longer 0:07:35.840 --> 0:07:38.720 period of time to our consumer, which tends to be 0:07:39.200 --> 0:07:42.920 a higher end UH traveler at the higher end of 0:07:42.920 --> 0:07:46.120 each of the segments that we serve UM is if 0:07:46.600 --> 0:07:50.119 there's a I guess very long and persistent sell off 0:07:50.400 --> 0:07:54.480 in UH in public equities, because many of the customers 0:07:54.480 --> 0:07:57.080 that we serve are invested in the marketplace. But I 0:07:57.120 --> 0:08:00.000 don't think day day in and day out volatility actually 0:08:00.160 --> 0:08:04.960 changes M the booking behaviors on a real time basis. 0:08:05.320 --> 0:08:07.800 Right now, I think that there's a scarcity issue. People 0:08:07.840 --> 0:08:10.000 want to make sure that they've got their bookings for 0:08:10.080 --> 0:08:14.200 the holiday periods. Um, we're seeing booking levels across all 0:08:14.240 --> 0:08:16.760 of our hotels, not just for resorts now for the 0:08:16.880 --> 0:08:22.200 summer holidays up between twenty for UM Labor Day, fourth 0:08:22.240 --> 0:08:26.360 of July and Memorial Day, and so I think that's 0:08:26.400 --> 0:08:30.239 one of the drivers. The second thing is corporations and associations, 0:08:30.240 --> 0:08:33.520 which is a significant part of our business, are coming 0:08:33.559 --> 0:08:36.319 back to meetings in a meaningful way and the booking 0:08:36.400 --> 0:08:40.199 levels there are also rising. So UM we do see 0:08:40.880 --> 0:08:44.240 booking levels maintaining at this point. And you know, I 0:08:44.280 --> 0:08:46.600 would say if there's a very long and drawn out 0:08:47.480 --> 0:08:50.599 bear market or recession, then of course it's going to 0:08:50.640 --> 0:08:54.760 affect all businesses. But I think our customer base, being 0:08:55.200 --> 0:08:58.760 relative at the relatively higher end of of the you know, 0:08:58.800 --> 0:09:03.560 income scale, are more resilient and less subject to volatility 0:09:03.600 --> 0:09:06.640 in terms of their travel patterns, especially for leisure and 0:09:06.679 --> 0:09:08.880 mark I want to dig into that final point because 0:09:08.880 --> 0:09:12.040 obviously after the week of earnings that we've had, the 0:09:12.080 --> 0:09:15.760 consumer is definitely in focus how they might be shifting 0:09:15.760 --> 0:09:18.960 their spending, spending more on staples, less on sort of 0:09:19.040 --> 0:09:22.679 discretionary purposes. And you mentioned the bookings obviously for the 0:09:22.720 --> 0:09:25.480 summer months up across the board, But I'm curious, have 0:09:25.520 --> 0:09:29.720 you seen any indications that revenue spending on vacations could 0:09:29.760 --> 0:09:34.320 be slowing down or shifting. No, uh, not at all. 0:09:34.400 --> 0:09:37.760 On the contrary, I would say we've had, Um, we've 0:09:37.760 --> 0:09:42.320 had a significant increase in spend. Our rates are up 0:09:42.360 --> 0:09:46.000 significantly from twenty nine. A lot of this is really 0:09:46.559 --> 0:09:51.160 driven by penop demand and by a really really strong 0:09:51.400 --> 0:09:55.400 human desire to reconnect with people. So um, I think 0:09:55.480 --> 0:09:58.360 it's you know, people are making their decisions based on 0:09:58.440 --> 0:10:02.040 what they're going to be most fulfilled buy and what 0:10:02.160 --> 0:10:04.920 matters the most to them, and that is reconnecting with 0:10:04.920 --> 0:10:07.400 with friends and family. Mark. I know that you do 0:10:07.480 --> 0:10:10.800 serve a higher and clientele, but everybody has their limits 0:10:10.800 --> 0:10:13.000 when it comes to to spending. And I wonder about 0:10:13.120 --> 0:10:16.600 air fare prices. They are up double digits from last month, 0:10:16.679 --> 0:10:20.120 double digits from last year. Uh. I don't know if 0:10:20.120 --> 0:10:23.000 you've our listeners are familiar with this. Checking the price 0:10:23.040 --> 0:10:25.240 of flights right now, it's kind of mind boggling to 0:10:25.280 --> 0:10:27.079 see how much it is to fly a short distance 0:10:27.440 --> 0:10:31.000 thanks to you know, huge demand lack of supply, and 0:10:31.000 --> 0:10:33.199 then of course oil prices as well. How do you 0:10:33.280 --> 0:10:35.760 think about that in the context of what a consumer 0:10:35.880 --> 0:10:38.760 spends when they do visit one of your properties. Yeah. 0:10:38.880 --> 0:10:41.760 It First of all, UM, I woul just note that 0:10:41.800 --> 0:10:46.360 we UH we now own the largest tour operations tour 0:10:46.400 --> 0:10:50.600 operator platform in the UH in North America, so it's 0:10:50.640 --> 0:10:54.719 called a LG Vacations UM back in they handle over 0:10:54.800 --> 0:10:59.960 three million passengers and it's mostly doing selling packaged UM travel, 0:11:00.200 --> 0:11:04.160 so airfare included UM and so we tracked we're tracking 0:11:04.200 --> 0:11:07.840 this extremely closely, UM, and I would say that there's 0:11:07.840 --> 0:11:12.120 no question that we have seen a significant increase in 0:11:12.160 --> 0:11:15.600 airfares and I think that will persist for some period 0:11:15.640 --> 0:11:20.840 of time until supplying demand starts to balance out a bit. 0:11:21.000 --> 0:11:23.800 And the supplying demand I'm talking about right now has 0:11:23.840 --> 0:11:28.280 to do with schedules, how many planes are are in service. UM. 0:11:28.320 --> 0:11:32.319 I would note that the air the air traffic, the 0:11:32.880 --> 0:11:36.959 total lift capacity into Cancoon and Punta Kana, which are 0:11:36.960 --> 0:11:40.760 too very large markets for US UM in a l 0:11:40.800 --> 0:11:47.359 G dcations are up UM as compared to twenty levels. 0:11:47.400 --> 0:11:51.080 So it's clear that the airlines have have definitely clued 0:11:51.080 --> 0:11:56.040 in on where demand is and they've added capacity. UM. 0:11:56.040 --> 0:11:57.920 It is also true that air fares are up in 0:11:58.000 --> 0:12:01.000 that they're under some inflation reprecious. So I think that 0:12:01.040 --> 0:12:04.040 they're The dynamics for them have in part to do 0:12:04.080 --> 0:12:08.079 with energy prices, you know, get gas for their their 0:12:08.120 --> 0:12:13.280 aircraft aviation guests. And for US UM we look at 0:12:13.840 --> 0:12:18.080 how total unit value or total package prices are increasing, 0:12:18.080 --> 0:12:21.000 and they are. But again I think UM. I think 0:12:21.040 --> 0:12:25.240 as things start to stabilize in the oil and gas markets, 0:12:25.320 --> 0:12:29.000 and as we see supply being brought back with more schedules, 0:12:29.000 --> 0:12:32.680 more aircraft and more pilots UM UH back into the industry, 0:12:33.120 --> 0:12:35.760 we'll start to see a rebalancing. And that may that 0:12:35.840 --> 0:12:38.000 may take a number of months to do, but I 0:12:38.040 --> 0:12:40.760 think that that's the that's the inevitable outcome. And I 0:12:40.760 --> 0:12:44.520 want to talk about all inclusive resorts because you acquired 0:12:44.640 --> 0:12:48.160 Apple Leisure Group last year and UH seems to be 0:12:48.240 --> 0:12:51.440 very popular, especially in UH the Caribbean. Do you have 0:12:51.440 --> 0:12:55.480 any plans to bring that model to your US hotels? Yeah? 0:12:55.520 --> 0:12:59.280 Actually right now, I would say that the focus remains 0:12:59.440 --> 0:13:04.319 in Mexico, UH. In the Caribbean, UM, we've and are 0:13:04.480 --> 0:13:07.679 some of our key markets are Mexico first and foremost, UM, 0:13:07.760 --> 0:13:11.040 the Dominican Republic in Jamaica. We also have a large 0:13:11.200 --> 0:13:14.440 operation in Europe in the Balieric Islands and in the 0:13:14.440 --> 0:13:19.640 Canary Islands and in the southern coastal areas of Europe. 0:13:20.120 --> 0:13:25.200 UM we just UM, we're just now engaging with owners 0:13:25.240 --> 0:13:27.839 and developers in the Middle East and ultimately in Asia. 0:13:27.920 --> 0:13:31.400 We think that all inclusive is a great format and 0:13:31.520 --> 0:13:36.960 can be extended across the globe. UM. The the particular 0:13:37.160 --> 0:13:40.160 arena that we're playing in his luxurial Inclusive UM, which 0:13:40.520 --> 0:13:45.359 a LG, the Apple Leisure Group actually really created from 0:13:45.440 --> 0:13:48.480 about twenty years ago, and so we are now the 0:13:48.559 --> 0:13:53.000 largest player in the world in luxurial inclusive and the 0:13:53.320 --> 0:13:58.360 the guest proposition is very very compelling because Um, you 0:13:58.440 --> 0:14:00.840 take a lot of the transactional elements that you might 0:14:01.040 --> 0:14:05.120 experience in a European plan hotel where everything is all 0:14:05.120 --> 0:14:08.839 a cart Um, You're you're taking a bunch of transactional 0:14:08.840 --> 0:14:11.800 friction out of the equation and it serves its purpose 0:14:11.920 --> 0:14:14.559 when you're on holiday. That was Highatt Hotels president and 0:14:14.640 --> 0:14:18.199 CEO Mark Hoplmasian. He spoke with me and a Bloomberg's 0:14:18.240 --> 0:14:21.400 Katie Greifeld back on May eighteen, We'll still ahead on 0:14:21.480 --> 0:14:24.840 Bloomberg Business Week, we break down the business of intelligent data. 0:14:24.840 --> 0:14:27.120 We're going to do that with the CEO of Informatica. 0:14:27.360 --> 0:14:39.760 This is Bloomberg Broadcasting from the financial capital of the World, 0:14:39.880 --> 0:14:43.320 Bloomberg eleven Frio in New York to Washington, d C. 0:14:43.520 --> 0:14:48.239 Bloomberg to Boston, Bloomberg one oh six one does San Francisco, 0:14:48.280 --> 0:14:51.760 Bloomberg nine sixty to the country Sirius XM Chado one 0:14:51.840 --> 0:14:54.760 nine team and around the globe the Bloomberg Business app 0:14:54.880 --> 0:15:00.400 and Bloomberg Radio dot Com. This is Bloomberg Business Week. Well, 0:15:00.400 --> 0:15:03.120 our world today is increasingly about data, right. We talked 0:15:03.120 --> 0:15:06.120 about this tim so much on air and the technology 0:15:06.200 --> 0:15:09.200 being used to harness that data more effectively to help 0:15:09.280 --> 0:15:12.720 leaders make better business decisions, intelligent decisions. Well, Carol, you 0:15:12.840 --> 0:15:15.760 and I paid a visit to Informatical World twenty twenty 0:15:15.800 --> 0:15:18.640 two in Las Vegas this past week. We got a 0:15:18.680 --> 0:15:22.000 close up look at the publicly traded enterprise software solutions 0:15:22.000 --> 0:15:26.360 company Informatica, and we asked the company CEO on it, Wallya, 0:15:26.480 --> 0:15:29.880 what his customers want most Right now, with market conditions 0:15:29.960 --> 0:15:33.920 changing so rapidly. Whatever is happening in the current term 0:15:34.040 --> 0:15:36.840 will come and go. But the fundamental things that are 0:15:36.920 --> 0:15:39.880 changing is every enterprise is going digital. Every enterprise is 0:15:39.920 --> 0:15:43.280 trying to become intelligent using the increasingly coming off the pandemic, 0:15:43.320 --> 0:15:45.440 Coming off the pandemic and the two years of pandemic, 0:15:45.520 --> 0:15:49.120 just completely exponential growth in in in digital and in fact, 0:15:49.160 --> 0:15:51.240 the point that we made is that digital is no 0:15:51.360 --> 0:15:54.200 more a differentiator, that's a given. How do you get intelligent? 0:15:54.720 --> 0:15:56.840 And for that, how do you become data driven? And 0:15:56.960 --> 0:15:58.960 that's what we're all about, and that's what we're seeing 0:15:58.960 --> 0:16:01.840 increasing day the winds and demand for that. Everybody wants 0:16:01.840 --> 0:16:03.640 to like, hey, how do I harness the power of data. 0:16:03.720 --> 0:16:07.000 I have to manage customers, childing and environment, likeness, managed 0:16:07.000 --> 0:16:11.040 supply chains, managed drug discoveries, so those become important and 0:16:11.040 --> 0:16:13.400 without data that would not have happened. And and and 0:16:13.560 --> 0:16:16.440 look at during the pandemic, the vaccine development happened in 0:16:16.440 --> 0:16:19.440 the shortest time possible. Why And we were part of 0:16:19.480 --> 0:16:23.040 that process bringing the best data, rapidly, looking at trial data, 0:16:23.040 --> 0:16:24.720 getting infidence out of it so you can say, well, 0:16:24.800 --> 0:16:28.040 this vaccine makes sense to go out, that's what is happening, 0:16:28.040 --> 0:16:30.360 and that's what we see. What specifically are you hearing 0:16:30.360 --> 0:16:33.040 from companies about the macro economic environment? And you know, 0:16:33.080 --> 0:16:34.960 we get a good view of it, not just with 0:16:35.000 --> 0:16:37.080 the analysts we talked to, but with the CEO as 0:16:37.120 --> 0:16:38.800 we talked to. What we see from earnings reports. We're 0:16:38.800 --> 0:16:40.200 in the midst of earnings right now. We're starting to 0:16:40.240 --> 0:16:43.560 see inventory levels, for example, come up at retailers. They 0:16:43.600 --> 0:16:46.360 need the data to sort through those inventory levels to 0:16:46.400 --> 0:16:49.480 help understand what consumers are gonna buy, when they're going 0:16:49.520 --> 0:16:51.400 to buy it, and control those levels. What are you 0:16:51.440 --> 0:16:55.640 hearing from customers about what's going on in the macroeconomic environment. See, 0:16:55.640 --> 0:16:57.800 there are two things behaving. Number one is everybody is 0:16:57.840 --> 0:17:01.760 definitely cautious looking at the economy. Kind of it does 0:17:01.960 --> 0:17:04.840 does give you what's going on. But at the same time, 0:17:05.480 --> 0:17:07.440 you know, we have so many great customers who spoke 0:17:07.480 --> 0:17:10.480 here and I'll give you an example, American Airlines during 0:17:10.520 --> 0:17:14.679 the middle of the pandemic, and they basically invested in 0:17:14.720 --> 0:17:17.520 our platform and I'm like, what are you doing? But 0:17:17.600 --> 0:17:19.440 the whole I mean the whole air lines But they 0:17:19.480 --> 0:17:23.080 realized that look, ultimately, pandemic will be over. This macro 0:17:23.200 --> 0:17:24.600 will be over when we come out. What do you 0:17:24.640 --> 0:17:27.879 need to do manage your customer experience better? How do 0:17:27.920 --> 0:17:30.359 you do it? Understand your data better, government better? I 0:17:30.359 --> 0:17:32.400 want to give it to every user across the enterprise. 0:17:32.680 --> 0:17:34.439 So I think that's what I'm hearing from customers. Are 0:17:34.520 --> 0:17:38.320 things that are the data related foundational things are here 0:17:38.359 --> 0:17:41.800 to stay. Now. You may stagger it, but you cannot 0:17:41.840 --> 0:17:44.439 avoid investing in it. But yes, the current macro does 0:17:44.480 --> 0:17:45.840 not get away from you. You've got to look at 0:17:45.880 --> 0:17:47.439 that every day and it gives you a little bit 0:17:47.480 --> 0:17:50.159 of caution, but these are fundamental things that you have 0:17:50.200 --> 0:17:52.200 to invest you know what I think about I always 0:17:52.200 --> 0:17:54.560 think about our investor audience, very smart audience, but they're 0:17:54.560 --> 0:17:56.440 trying to be like, Okay, I understand we talked about 0:17:56.480 --> 0:17:58.640 data all the time. We talk about the cloud all 0:17:58.640 --> 0:18:00.960 the time. What is it that you an investment audience 0:18:01.040 --> 0:18:03.760 has to understand about, you know, kind of the sophistication 0:18:03.800 --> 0:18:06.400 of data, how it's becoming more intelligent, Like what does 0:18:06.480 --> 0:18:09.880 that mean? And what is the you know, potential top 0:18:09.880 --> 0:18:12.400 and bottom one, especially for publicly health companies. So I'll 0:18:12.440 --> 0:18:14.200 give you a couple of examples and I hosted a panel. 0:18:14.280 --> 0:18:16.479 We had three customers, you know, one from g Digital, 0:18:16.560 --> 0:18:19.680 one from Freddie Mac and one from Texas Health and Hospitals. 0:18:19.720 --> 0:18:21.879 And you know, and I'll give you other examples like 0:18:21.920 --> 0:18:24.160 Kroger and all. So Kroger as an example, just start 0:18:24.200 --> 0:18:26.239 to their CEO. There you go. So Kroger is an 0:18:26.240 --> 0:18:28.800 informatic customer, and what they were using us for is 0:18:28.880 --> 0:18:32.040 egg How do I get the right product at the 0:18:32.160 --> 0:18:35.280 right shelf at the right time. It has multiple benefits. 0:18:35.400 --> 0:18:37.840 It's a lost revenue opportunity that you want to wait. 0:18:38.200 --> 0:18:39.760 Plus also, if you get the wrong product and the 0:18:39.840 --> 0:18:42.000 right shelf, you're basically waste it, which just makes means 0:18:42.000 --> 0:18:44.480 that more cost. And then you're managing a supply chain 0:18:44.520 --> 0:18:46.960 that but if I'm a customer, I want gratification, So 0:18:47.080 --> 0:18:50.360 it really goes from the revenue to cost to obviously 0:18:50.400 --> 0:18:53.960 managing customer expectations. Weren't companies doing that before like that? 0:18:53.960 --> 0:18:55.560 That to me is kind of mind blowing. You would 0:18:55.560 --> 0:18:58.159 have thought that if you look at it retailer, the 0:18:58.160 --> 0:19:00.080 margins are the thinnest, right, how do you manage your 0:19:00.119 --> 0:19:01.960 supply chains so you basically make sure that you're not 0:19:02.119 --> 0:19:04.280 losing products on the shelf at some point, right, if 0:19:04.320 --> 0:19:05.919 you get the right product, if you have you know, 0:19:05.960 --> 0:19:08.679 perishable goods and you throw it away, that's cost or 0:19:08.760 --> 0:19:11.360 if you have an empty shelf then you basically lost revenue. 0:19:11.440 --> 0:19:12.720 How do you get better at it? And how do 0:19:12.760 --> 0:19:14.240 you do more and more just in time? Look at 0:19:14.240 --> 0:19:16.800 the supply chain problem at dealing, right, you go to 0:19:16.840 --> 0:19:19.399 all the other end. Healthcare is a huge thing in there. 0:19:19.640 --> 0:19:22.520 So when when John was talking from Texas Health and hospitals, right, 0:19:22.720 --> 0:19:24.800 how do they look at patient care to make sure 0:19:24.800 --> 0:19:26.679 that when somebody is coming in they can provide the 0:19:26.720 --> 0:19:30.840 most personalized care in time for that reduces again the 0:19:30.840 --> 0:19:35.280 supply chain of healthcare cost but saves lives. So there 0:19:35.320 --> 0:19:37.600 are so many applications like that that when we talk 0:19:37.680 --> 0:19:39.800 to customers that they apply dat or too. Okay, listen, UM, 0:19:39.880 --> 0:19:41.280 got a couple of minutes left here, and I do 0:19:41.400 --> 0:19:44.080 wonder you know you're talking about supply chains and helping 0:19:44.160 --> 0:19:47.680 other companies and your clients manage that. When you look 0:19:47.720 --> 0:19:49.879 at some of the big macro issues, whether it's higher prices, 0:19:49.920 --> 0:19:53.040 supply chains, labor constraints, what's type of mind? What what 0:19:53.240 --> 0:19:56.239 of those big macro issues are affecting you guys at 0:19:56.280 --> 0:19:59.600 inform America. You know, we obviously look at customers uh 0:19:59.800 --> 0:20:02.320 to front industries end up operating differently. I look at 0:20:02.320 --> 0:20:07.560 obviously dexperin Yeah, carefully, I look at business priorities very differently. 0:20:07.560 --> 0:20:11.200 Which business priorities are getting optimized differently? That was Ahmed Waliah. 0:20:11.320 --> 0:20:14.280 He is the CEO at Informatica. You're listening to Bloomberg 0:20:14.280 --> 0:20:17.800 Business Week coming up next, tackling systemic inequity in the 0:20:17.840 --> 0:20:33.679 world of finance. This is Bloomberg. You're listening to Bloomberg 0:20:33.720 --> 0:20:37.359 Business Week with Carol Messer and Bloomberg Quick Takes Tim 0:20:37.400 --> 0:20:42.119 Stinovich from Bloomberg Radio. This past Wednesday mark the two 0:20:42.200 --> 0:20:45.200 year anniversary of the murder of George Floyd, a tragedy 0:20:45.240 --> 0:20:47.840 that's set off another round of soul searching and discussions 0:20:48.119 --> 0:20:51.159 around race relations and inequalities in the United States, and 0:20:51.480 --> 0:20:54.320 to be fair, really globally, we continue to struggle with 0:20:54.400 --> 0:20:57.000 taking the right actions and turning all of the discussions 0:20:57.119 --> 0:21:01.040 into action. This includes the financial sector joining us now 0:21:01.080 --> 0:21:03.920 to discuss our Bloomberg News New York Deputy Bureau Chief 0:21:03.960 --> 0:21:07.760 Shartilla Brantley and Darren Dodson, Darren's managing partner at a 0:21:07.800 --> 0:21:10.720 Lumen Capital. It's an impact fund of funds with the 0:21:10.760 --> 0:21:14.080 goal of addressing systemic in equity by reducing racial and 0:21:14.119 --> 0:21:17.960 gender bias in investing. We had an opportunity to conduct 0:21:18.280 --> 0:21:23.040 research ourselves with Stanford University and some of the leading 0:21:23.080 --> 0:21:25.359 researchers in the world on this topic. And one of 0:21:25.359 --> 0:21:29.840 the things that blew us away is not only would 0:21:30.359 --> 0:21:33.560 investors we secretly tested a hundred and eighty of them 0:21:33.600 --> 0:21:39.320 systematically choose white lead funds consistently over black lead funds, 0:21:39.320 --> 0:21:42.399 but as we increased the performance, they did it more often. 0:21:42.440 --> 0:21:45.919 In other words, they were living ready to leave money 0:21:45.920 --> 0:21:48.680 on the table before they would invest in top performing 0:21:48.720 --> 0:21:51.640 black lead funds. So this was a kind of shocking 0:21:51.760 --> 0:21:55.240 finding because many of those we tested managed the largest 0:21:55.240 --> 0:21:58.440 pools of capital in the world, including sovereign wealth funds, 0:21:58.480 --> 0:22:03.879 pension funds, university endowments, etcetera. And they weren't necessarily going 0:22:03.920 --> 0:22:08.200 out to um you know, kind of uh select one 0:22:08.240 --> 0:22:11.879 group over another because of race. But nonetheless, all of 0:22:11.960 --> 0:22:14.760 us in the industry have a fiduciary duty, and they 0:22:14.760 --> 0:22:17.919 were sort of going right past that fiduciary duty to 0:22:18.080 --> 0:22:23.280 choose the best investments in systematically choosing people because their 0:22:23.320 --> 0:22:27.840 mind was clouded with bias or overlooking the best opportunities. 0:22:28.200 --> 0:22:30.200 So Tea, I want to ask you, does that buy surprise? 0:22:30.280 --> 0:22:36.439 You know, because often when you are um a person 0:22:36.480 --> 0:22:40.000 of color, any type of investment your viewed as being 0:22:40.040 --> 0:22:43.359 more risky as someone who is not a person of 0:22:43.400 --> 0:22:47.720 color and maybe not a woman. So I'm not totally shocked, 0:22:47.800 --> 0:22:50.960 but you know, it is surprising that, you know, investors 0:22:51.040 --> 0:22:53.280 look at data and if the data shows that we're 0:22:53.320 --> 0:22:54.919